June 2003: 5-year renewal of heavy maintenance contract and component management for 8 737's by FLS Aerospace (ATD) or (TEL) valued at $12 Million. "C" checks will be done at (TEL) Dublin or (ATD) Stansted. A consignment of components will be provided at Athens for (CRM)'s exclusive use, as well as access to the pool stock of (ATD)'s major component distribution center at London Heathrow (LHR).

October 2003: Is the 1st Greek airline to launch e-tickets (paperless tickets), a new modern service that offers the opportunity of booking and issuing a ticket at the same time.

Athens - Milan (Linate) (daily). Code share with Air One (ADH), Rome to Genoa, Palermo, Turin, and Venice, with connections from Milan to be added in November 2003. In November 2003, Athens - Milan/Munich, Kavala - Munich, and Athens - Chios/Kos.

1st 8 months = 1.83 Million passengers (+14%).

Retires its 3 ATR 72's and returns to (GECAS) (GEF). Will acquire 3 more 737's by spring of 2004.

March 2005: Strategic cooperation with Lufthansa (DLH) will result in code share on flights between Germany & Greece, as well as some Greek domestic routes and on some selected (DLH) international routes.

May 2005: 1,340 employees.

September 2005: $420 Million, 8 orders (2/07) A320's with options for 12 A319's, A320's, or A321's airplanes to replace its fleet of 737-300's and 737-400's.

October 2005: Aegean Airlines (CRM) is a possible candidate to be the next Star Alliance regional member. The Greek carrier begins code share services with Lufthansa (DLH) this autumn. Lufthansa (DLH), which was the sponsoring airline for Adria Airways (ADR) and Croatia Airlines (CRH) to join Star regional, could offer the same option to Aegean (CRM). "Normally the carrier decides which sponsoring partner they want. But we would be interested to help," Lufthansa (DLH) Group Chairman and (CEO) Wolfgang Mayrhuber said.

(CRM) has managed growth rates of +20% in the last 5 years and its market share on domestic routes now exceeds 50%.

November 2005: Aegean Airlines (CRM) and Lufthansa (DLH) launched their 1st code share flights on November 1. 82 daily departures within Greece and additional flights to Munich, Frankfurt, Amsterdam, Brussels, Larnaca, Hannover, Berlin, Hamburg and Paris will be operated under code share. Aegean (CRM) could become the next Star Alliance (SAL) Regional member.

Greek air traffic controllers were planning a 24-hour strike today as part of a larger initiative by public sector unions demanding higher wages. Olympic Airlines (OLY) will cancel 107 flights and Aegean Airlines (CRM) planned to ground 120 flights.

(ILFC) (ILF) announced the lease of 3 A320-200s (V2527-A5) to Aegean Airlines (CRM) for 6 years. The airplanes are scheduled for delivery in February and March 2007.

Aegean Airlines (CRM) announced a firm order for 8 A320s with 12 options in a move that signals the largely domestic carrier may be primed to compete for greater market share with floundering Olympic Airlines (OLY). Aegean (CRM) will lease +6 additional A320s, according to International Aero Engines (IAE). The new airplanes, equipped with a 2-class configuration and powered by (IAE) (V2500)s, will be delivered beginning in 2008 and will replace older lift in Aegean (CRM)'s fleet, which currently comprises 12 leased 737s and 6 Avro RJ100s. The airline is a new Airbus customer. (IAE) said the engine order is worth $340 million if all options are exercised.

The A320s will be used for expansion on both domestic and international routes from the carrier's main bases at Athens and Thessaloniki. Its current scheduled European operations include code share routes with Lufthansa (DLH) and Air One (ADH) of Italy.

"The choices within the A320 family offer flexibility for our future growth. With this investment, Aegean (CRM) will have the youngest fleet in our region," President & Managing Director Theodoros Vassilakis said, adding that the privately held airline does not rule out issuing stock if it achieves sustained profitability. Dow Jones reported that Aegean (CRM) anticipates 2005 revenue will reach €330 million/$389.7 million, a +18% increase over last year.

February 2006: Aegean Airlines (CRM) extended its engine maintenance and repair agreement with Snecma Services for 2 more years, until 2009. The deal covers Aegean (CRM)'s (CFM56-3)s. The original contract, signed in March 2004, encompassed engine Maintenance Repair & Overhaul (MRO) plus analysis of in-flight performance. The extension includes an exclusive Time & Material provision.

Aegean Airlines (CRM) confirmed an order for 8 A320s plus 12 options announced in December. The airplanes will be powered by (IAE) (V2500)s. No delivery schedule was announced. The carrier currently operates 7 737-400s, 4 737-300s and 6 B AE RJ100s. The new airplanes will replace part of its fleet and also be used for expansion on domestic and international services.

July 2006: Aegean Airlines (CRM) selected Rockwell Collins avionics as well as (PAVES) and the Airshow 4200 for 8 new and 3 leased A320s. The agreement covers options on 12 additional airplanes with deliveries scheduled to begin in February.

Aegean Airlines (CRM) ordered 3 more (IAE) (V2500)-powered A320s, bringing its total order for the type to 14, including 3 leased from (ILFC) (ILF), plus 9 options. It signed the initial agreement in December. The new A320s are scheduled to be delivered between January 2007 and April 2009, and will replace older airplanes and be used for expansion on routes from the carrier's Athens and Thessaloniki bases. "Our success on both domestic and international routes gives us the confidence and the drive to invest in a larger airplanes," President & (CEO) Theodoros Vassilakis said.

Following the addition of Sofia to its network, Aegean (CRM) will start flying to Bucharest in October and plans to serve Istanbul, Cairo, Belgrade and other destinations in the Balkans, once permission is secured. It also will develop further its six routes to Germany and Italy. It is a Lufthansa (DLH) regional partner and reports an average annual growth rate of +20% over the past 5 years. It offers flights to 15 Greek and eight European destinations and operates a fleet of 6 Avro RJs, 5 737-300s and 8 737-400s.

February 2007: In 2006, Aegean Airlines (CRM) carried 4,447,481 passengers using its 21 jet airplanes, thus achieving an increase of +11% compared to 2005. The number of passengers carried is important in a European scale also, as it classifies Aegean (CRM) as a medium size air carrier in Europe. It should be noted that Aegean (CRM)’s traffic growth rate is double, >5,6% achieved by all airlines operating in the Athens International Airport during 2006. Furthermore, Aegean (CRM) carries 22.5% of the entire passenger traffic of the Athens International Airport, served by >60 airlines.

In the domestic market in 2006, Aegean (CRM) achieved an increase of +10% compared to 2005, carrying 3,014,117 passengers. Aegean (CRM) was even more dynamic in the international market, carrying 1,433,364 passengers indicating an increase of +15.5% compared to 2005. Aegean operated with 21 jet airplanes, which flew 48.286 flights with a load factor that exceeded 70% LF. The average passenger number per flight reached 92 indicating an increase of +4% compared to 2005. This passenger traffic increase is owed to the increase of the number of flights from Thessaloniki to Germany, the newly established cooperation of Aegean (CRM) with Lufthansa (DLH), the market share increase in the Cyprus route, as well as the addition of new routes to Sofia, Bucharest, Cairo and Samos. A significant contribution was that of the charter operations, showing an increase of +19%. In that field, Aegean (CRM) increased its fleet to 4 airplanes exclusively dedicated to charter operations, thus offering direct services to the Greek islands from 25 European airports mainly in France, Italy, Norway, Germany, Switzerland, Spain and therefore supporting Greek tourism.

Aegean continues with its fare policy of “The earlier, the cheaper”, rewarding those passengers who book their flights as early as possible.

Aegean (CRM), continuing its growth, is taking delivery of its 1st 3 brand new A320s in February and March 2007, increasing its fleet to 24 jet airplanes and enhances its route network in the summer schedule of 2007 in 3 directions:
1) International Network Enhancement from Athens:
3 additional direct flights to Munich and Frankfurt, which will be flown with Aegean (CRM)’s new A320s. Together with Lufthansa (DLH)’s flights to these destinations, daily direct flights reach 9, therefore offering a wider schedule and a more efficient connection with these 2 main European hubs and to 181 destinations and 76 countries beyond, through Lufthansa (DLH)’s network.

In Italy, a 2nd flight to Milan is inaugurated giving the capability to fly there and back in the same day, while through its cooperation with Air One (ADH), there will be a 3rd daily flight to Rome, while already offering a direct service to Naples.

Finally, with the summer schedule of 2007, the schedules to Bucharest and Sofia are enhanced and improved.

2) More direct domestic and international flights from Thessaloniki.

Aegean (CRM), reinforcing its position as the largest air carrier for Northern Greece, adds new flights from Thessaloniki to Chania and Kos, while it increases its frequencies to Mykonos, Santorini and Heraklion. Furthermore, in conjunction with the international network, it introduces new direct flights from Thessaloniki to Bucharest and significantly reinforces frequencies to Larnaka.

3) Flights from Heraklion and other tourist destinations.

Aegean (CRM), for the 1st time, introduces scheduled flights from Heraklion and Rhodes to international destinations, contributing in this way to the extension of the tourist season and in the development of Greek tourism. In particular, Aegean (CRM) introduces direct flights from Heraklion to Munich, Dusseldorf, Stuttgart, Larnaca, & Milan, while for 2 summer months, there will be direct flights from Mykonos and Santorini to Rome and Milan.

Theodore Vassilakis Chairman & Managing Director of Aegean Airlines (CRM) stated: “The production results of 2006 reflect the confidence of the traveling public towards Aegean Airlines (CRM). They indicate that the strategy we follow is efficient and allow us to proceed even more dynamically. This is why in 2007, by taking delivery of the 1st 3 Airbus (EDS) A320s, we significantly enhance our network, and at the same time, embark in an investment of renewal of our fleet, which will further improve our level of services”.

Aegean Airlines (CRM) will take delivery of its 1st 3 new A320s through March, increasing its fleet to 24 airplanes. The carrier's summer schedule features 150 daily flights to 15 Greek and 10 international destinations.

• New direct Thessaloniki - Chania flights, 2x-weekly increasing to 3x-weekly in peak season.
• New direct flight Thessaloniki - Kos, 1x-weekly starting July 15 to end of August.
• Schedule enhancements in the summer period of connections from Thessaloniki to Mykonos, Santorini and Heraklion while at the same time, flight times are improved.
• Heraklion - Rhodes 1x-weekly.

Aegean Airlines (CRM) is the most dynamically developing Greek airline and the 1st ever Greek airline to offer electronic ticketing and electronic check-in. Aegean (CRM) offers 150 scheduled flights daily to 15 destinations in Greece and 10 internationally (in Germany, Italy, Cyprus, Bulgaria, Romania, Egypt). Aegean (CRM) is a Regional Partner of Lufthansa (DLH) providing access for its passengers to Lufthansa (DLH)’s global network. Additional advantages of the cooperation are the collection and redemption of frequent flier miles by passengers traveling on both airlines.

2 A320-232s (3066, SX-DVH; 3074, SX-DVI), (ILF) leased.

May 2007: Aegean Airlines (CRM) operates scheduled domestic services from Athens & Thessaloniki to link 15 major Greek destinations, in addition to 6 destinations in Germany, and Italy, as well as to Bucharest, Cairo, Larnaca, and Sofia.

June 2007: Sabre Airline Solutions signed a "major" revenue management contract with Aegean Airlines (CRM). The Greek carrier will use the product to control seat price and availability by both flight leg and segment. It anticipates "significant" incremental revenue as a result.

July 2007: Aegean Airlines (CRM) said its recent Initial Public Offering (IPO) is expected to raise a total of €138.5 million/$187.5 million and was priced at €6.50 to €7.80 per share.

August 2007: Aegean Airlines (CRM) reported a +€6.4 million profit for the 6 months ended June 30, its 1st reporting period as a publicly listed company, a nearly sixfold increase over the +€1.1 million earned in the year-ago semester. "The recent Initial Public Offering (IPO) represents an important milestone for our company since the gross proceeds of €135 million, coupled with our improved positive results, give us the necessary tools to implement our growth plans with financial security," Executive VP Eftichios Vassilakis said. The Greek carrier's revenue rose +22% year-over-year to €209 million against a +19% increase in expenses to €181.7 million, lifting operating profit +79% to +€10.4 million. Vassilakis said the improvement occurred "despite increased capacity from competitors and increased yield pressure" and without the benefit of the share capital increase, which will be included on its 3rd-quarter financial statement.

The carrier took delivery of its 1st 3 A320s in the 1st quarter and will take 10 of the type next year, replacing 737-300s/-400s while adding capacity. "The company's objective is to gradually increase its coverage and flight density to European destinations so that business (C) as well as leisure passengers (Y) are offered an attractive competitive product," it said.

September 2007: Aegean Airlines (CRM) ordered 6 additional (IAE) (V2500)-powered A320s, bringing to 25 the number of A320 family airplanes, including 2 A321s, to which the Greek carrier has committed. The new order is valued at >$1.5 billion at list prices and will be part of the airline's effort to replace 15 737 Classics. Aegean (CRM) intends to grow its fleet by 2 to 3 airplanes per year. It has taken delivery of 3 A320s this year.

November 2007: Aegean Airlines (CRM) reported a +€33.4 million/+$49.2 million profit through the first nine months of 2007, up +45% over the year-ago period, "Thomson Financial" reported from Athens. Sales climbed +20% to €370.5 million, and passenger numbers were up +19% to 4.1 million.

January 2008: Aegean Airlines (CRM) reported a +18% increase in passengers last year to 5.2 million from 4.4 million in 2006. Domestic passengers climbed +10% to 3.4 million and international passengers rose +35% to 1.9 million. Aegean (CRM) said it "aims at accelerating its re-fleeting process and at further expanding its network" in 2008.

A320-232 (3365, SX-DVJ), Aerventure leased.

February 2008: Aegean Airlines (CRM) weathered increased competition in Western Europe and soaring fuel prices to post a profit of +€35.8 million/+$52.6 million in 2007, up +39% from the +€25.7 million earned the prior year, as rising load factors and "distribution efficiencies" resulting from higher Internet bookings boosted its bottom line.

Managing Director, Dimitris Gerogiannis said the airline's June Initial Public Offering (IPO) and growing profits "provide financial security for implementing our growth plans." Aegean (CRM) has 27 A320 family airplanes on order following the conversion of two A321 options and intends to complete its fleet renewal program in 2010. Revenue last year rose +20% to €482.7 million, as passenger numbers climbed +18% to 5.2 million. Operating profit was up +7% to +€42.9 million from +€40 million in 2006. While domestic traffic lifted +10% (RPK)s, international passengers jumped +35% to 1.9 million.

Georgiannis said Aegean (CRM) plans to serve 6 of the 7 most popular international destinations from Athens by next summer, including a new service to London.

Aegean Airlines (CRM) will launch flights from Athens to London Stansted (2x-daily from May 15, aboard A321s), Tirana (daily from May 2 aboard RJ-100s), Limnos (4x-weekly, from March 30, becoming daily, May 1) and Kefalonia (4x-weekly, from May 1, becoming 6x-weekly, in July, and daily, in August). The carrier expects to take delivery of 10 A320s/A321s this year and to replace its 15 737s with Airbus (EDS) narrow bodies by June 2009.

A320-232 (3392, SX-DVK), AerVenture leased.

March 2008: 2 A320-232s (3423, SX-DVL; 3439, SX-DVM), deliveries.

April 2008: 2007 net profit rose by +39% to Euro 35.8 million, while total revenue was up +20% to Euro 482.7 million compared with 2006. Contributing factors were strong passenger growth (up +18% to 5.2 million), and network expansion during 2007.

A320-232 (3478, SX-DVN), delivery.

A321-231 (3462, SX-DVO), (ILF) leased. Will be used on a new 2x-daily, connection between Athens and London. The 2nd A321-200 could be introduced on flights to Germany, where Aegean (CRM) serves Dusseldorf, Frankfurt, Munich, and Stuttgart.

May 2008: Aegean Airlines (CRM)'s net loss widened to -€4.4 million/-$6.8 million in the 1st quarter, traditionally its weakest period, from -€2.6 million in the year-ago quarter. Revenue climbed +23% to €98.8 million on the back of international network expansion and a +6% rise in sectors flown. Fuel costs jumped +57% to €24.4 million and operating loss plunged to -€6 million from -€2.6 million.
"Aegean (CRM) continued to expand its business during the 1st quarter (Q1), amid challenging conditions for the airline sector created by the rise of oil prices to unprecedented levels," Managing Director Dimitris Gerogiannis commented. "We are encouraged by the continuing positive maturing of international destinations initiated within the last two years, as well as from the results of our revenue management efforts."

Passengers carried rose +10% to 1.1 million, including a +35% growth in international enplanements to 357,000 on +32% more flights and a +1% gain in domestic boardings on a -3% reduction in flights. Traffic jumped +24% to 671 million (RPK)s on a +29% capacity hike to 1.06 billion (ASK)s. Load factor slipped -2.5 points to 63.7% LF. Yield was flat at 14.7 cents, despite an average segment length increase of +14%. Unit revenue fell -5% to 9.3 cents, and unit cost declined -2% to 8.9 cents, or -8% to 6.6 cents, excluding fuel.

The Greek carrier accelerated its fleet renewal during the reporting period, taking delivery of 4 new A320s, while 3 737s were returned to lessors. Looking forward, it said it "remains committed to implementing its communicated strategy of expanding its international network, while completing the fleet renewal plan from 737-300s/-400s to A320s/A321s by 2nd quarter (Q2) 2009."

August 2008: Aegean Airlines (CRM) reported a net profit of +€5.5 million/+$8.1 million for the 1st half of 2008, down -13% from the +€6.4 million it earned in the year-ago semester. Revenue rose +26% to €262.7 million on a +13% increase in passengers to 2.6 million, comprising a +8% growth in domestic enplanements, and a +24% gain internationally. (EBIT) fell -42% to €6 million. Managing Director Dimitris Gerogiannis said the result was helped by the gradual maturity of international routes opened during the past 3 years, the fleet renewal plan, and fuel surcharges. Aegean (CRM) took delivery of 8 A320s/A321s in the 1st half, and returned 4 737-300s to lessors, bringing the fleet at the end of June to 27 airplanes compared to 24 a year earlier.

Traffic rose +19% year-over-year to 1.8 billion (RPK)s on a +19% increase in capacity to 2.7 billion (ASK)s. Load factor was up +0.5 point to 67% LF. Unit revenue and yield each rose +6% to 9.7 euro cents and 14.4 euro cents, respectively, while unit cost climbed +7% to 9.4 euro cents. (CASK) excluding fuel, was down -1%. Georgiannis warned that the impact of adverse economic conditions and high oil prices will be "more intense" in Aegean (CRM)'s 2nd half. "Nevertheless, the company is confident of maintaining positive profitability and strong cash flows for the year and plans to continue its gradual expansion plans to solidify its position in the market," he said. It will take delivery of +2 more A320s by year end, 6 A320s, and 2 A321s in 2009, and 6 A320s in 2010. Its 737-300s/400s should be phased out by mid-2009.

2nd quarter = net profit of +$16 million (+$14 million).

September 2008: Aegean Airlines (CRM) is performing extremely well financially and is about to get a big boost when bloated Olympic Airlines (OLY) transforms into Pantheon Airways next year.

October 2008: Aegean Airlines (CRM) will launch new service from Athens (ATH) to Paris Charles de Gaulle (daily from November 12, becoming 2x-daily in March) and Dusseldorf (5x-weekly from October 26). A 3x-daily, (ATH) - London Stansted will start December 15. Aegean (CRM) will take delivery of 2 new A320s by year end, the 9th and 10th to enter the fleet this year. It plans to have 27 new A320/321s in service by 2010.

November 2008: Aegean Airlines (CRM) reported net income for the 1st 9 months of 2008 of +€26.5 million/+$34 million, down -21% from +€33.4 million in the year-ago period, saying the results were "solid" given "unprecedented" oil prices earlier this year, and "deteriorating economic conditions." The carrier did not provide quarterly results, but it is calculated that it posted a +€21 million 3rd-quarter profit on €205.5 million in revenue. Earnings were hurt by valuation losses on USA dollar airplane loans and fuel hedges.

Managing Director Dimitris Geogiannis said the "healthy" profit and a +26% year-over-year rise in 9-month revenue to +€468.2 million "demonstrates Aegean (CRM)'s ability to cope with the crisis that the airline industry is facing." He said the carrier will continue to grow, adding a 3rd daily, Athens - London Stansted flight on December 15 and a 2nd daily, Athens - Paris Charles de Gaulle flight in March. It launched 5x-weekly service to Dusseldorf last month.

The airline has taken delivery of 6 A320s and 2 A321s this year and will add +10 more A320 family airplanes over the next 10 months, enabling it to retire 7 737-300s/-400s. It returned 4 737-300s to lessors earlier this year. "We believe Aegean (CRM)'s operating costs will continue to decline with the completion of our fleet replacement program and additional cost control initiatives," Gerogiannis said. "We remain committed to our development plans for additional international destinations."

December 2008: Aegean Airlines (CRM) will launch service from Athens (ATH) to Brussels (BRU) (daily), Berlin (6x-weekly) Barcelona (5x-weekly), Vienna (5x-weekly), and Venice (3x-weekly) from the beginning of the summer schedule aboard A320s/A321s. It plans to acquire 10 new airplanes over the next 5 months, increasing its A320/A321 fleet to 21. It is replacing 737 Classics. It also said it is working on securing permission to fly outside the (EU) next year, and hopes to serve Istanbul and Tel Aviv. (CRM) reached a code share agreement with Brussels Airlines (DAT)/(CRM) under which (DAT)/(CRM) will add its code to Aegean (CRM)'s daily, (ATH) - (BRU) service and onward flights to Thessaloniki, Heraklion, and Rhodes, while (CRM) will add its code to (DAT)/(EBA)'s daily, (ATH) - (BRU) flight.

Greek air traffic controllers (ATC) are expected to stage a one-day strike, forcing the cancellation of all commercial flights, according to press reports. (CRM) confirmed the cancellation of its program on its website.

A320-232 (3709, SX-DVS), delivery.

January 2009: Aegean Airlines (CRM) announced that it will begin A320/A321 flights from Athens to Brussels, Berlin, Barcelona and Venice in March, increasing its summer network to 47 routes. It transported 6 million passengers in 2008, up +14% from the prior year, on a +5% rise in flights to 57,635. It plans to take delivery of 6 more Airbus (EDS) airplanes in the next 4 months and operate a fleet of 31 airplanes during the summer schedule.

March 2009: Aegean Airlines (CRM) joined the bidding for Olympic Airlines (OLY), offering a combined €170 million/$214.2 million for (OLY)'s Flight Operations, Maintenance Repair & Overhaul (MRO) division and its successor company "Pantheon." "The objective of (CRM) and its shareholders is the creation of a more powerful Greek air company" that can compete with larger European airlines, (CRM) said. It added that it would be able to take over (OLY) within 60 days of signing a deal and that it was willing to cede some domestic routes in order to facilitate competition. USA-based charter company Chrysler Aviation (DCY) has also reportedly re-entered the bidding, joining Swissport and Greece's Marfin Investment Group (MIG), each of which is seeking specific pieces of (OLY).

Later, the Greek government selected domestic holding company Marfin Investment Group (MIG) to purchase Olympic Airlines (OLY). "The government's legal and financial advisers informed us that the negotiations wth (MIG)'s advisers for the sale of (OLY)'s flying operations and technical maintenance ended successfully," Development Minister, Costis Hatzidakis said. The (MIG) bid €45.7 million/$57.5 million for (OLY)'s flight operations and €16.7 million for its Maintenance Repair & Overhaul (MRO) division. The government selected (MIG) over Aegean Airlines (CRM) and USA-based charter company Chrysler Aviation (DCY). It was unclear whether Swissport's €44.8 million offer for (OLY)'s ground handling operation remained under consideration.

(CRM)'s ambitions were checked when it was denied the right to purchase rival (OLY), but (CRM) said it has continued on a "healthy and dynamic growth path" and finished 2008 with a +€29.5 million/+$37.5 million profit, down only -18% from the +€35.8 million earned the previous year. Revenue rose +27% year-over-year to €611.7 million, driven by a +14% increase in passenger numbers to 6 million and a +12% gain in average ticket price. Operating expenses grew +28.3% to €561.9 million due to the increased activity and a +54% surge in fuel costs to €148 million. (EBIT) climbed +17% to €50.2 million.

(CRM) carried 3.7 million passengers on its domestic network, up +9%, while international passengers increased +24% to 2.3 million. Scheduled load factor remained flat at 70% LF. Unit revenue lifted +4% to €9.8 cents, reflecting improved revenue management, fuel surcharges and the maturation of routes opened in previous years, it said. (CASK) rose +5% to €8.2, but fell -2% excluding fuel. The carrier claimed it boosted its market share at Athens by +4 points to 29%.

It will take delivery of 8 new A320s/A321s this year and return 6 of 10 leased 737-300s/-400s. It has secured financing for all 2009 deliveries and will operate its summer schedule of 46 routes (including 4 new destinations) with 21 A320s/A321s, 6 Avro RJs and 4 737-400s.

In the seasonally weaker 4th quarter, (CRM) reported a +25% year-over-year rise in net earnings to +€3 million and an operating profit of +€3.7 million compared to +€100,000 in the 4th quarter of 2007.

Looking forward, Managing Director Dimitris Gerogiannis reckoned, "Prospects for 2009 will be affected by the current unfavorable business environment, the slowdown in economic activity and consequently expected reduced demand for transportation." However, he said the carrier "has developed strong fundamentals, strong financial structure and necessary flexibility that allow us to cope in the best possible way with current conditions."

(CRM) took delivery of its 4th and final A320-200 that is part of a sale/leaseback deal with (GECAS) (GEF).

May 2009: Aegean Airlines (CRM) reversed its traditional 1st-quarter deficit, posting a +€4.6 million/+$6.4 million profit compared to a -€4.4 million loss in the year-ago period, crediting falling oil prices, fleet renewal and reduced distribution costs owing to the rise in Web sales. It broke even on the operating level compared to a -€6 million loss last year but recorded a +€4.4 million gain on the sale of its participation in 3 catering companies.

Revenue increased +13% to €111.3 million on a +9% lift in passengers to 1.2 million. Its average fare on scheduled flights remained at €79.40, but load factor lost -7.1 points to 57.7% LF. (CRM), which is joining the Star Alliance (SAL), ended the reporting period with 31 airplanes, 4 more than a year earlier. "Despite the satisfactory set of results, we remain cautious as to the impact of the current economic crisis and the evident decline in demand and yield pressure, especially in international markets, which will inevitably affect our revenue performance for the full year," Managing Director Dimitris Gerogiannis warned.

The Star Alliance (SAL) Chief Executive Board accepted Aegean Airlines (CRM)'s membership application, (SAL) (CEO) Jaan Albrecht announced at a news conference in Athens. (CRM) is the 1st Greek carrier to join an alliance and will add a network spanning 23 domestic and 24 international routes on 200 daily flights.

"We believe (CRM) is an ideal fit into the (SAL)'s network. It has a strong regional presence in the SE of the Mediterranean, at the crossroads of East and West," Albrecht said, adding that the carrier "has done everything right, in our minds, to prepare for the (SAL) membership, including the building up of bilateral links with several members. It has a high brand recognition, high safety standards and service levels, it has a solid and successful management and has grown in a focused but controlled manner since its founding."

(CRM) Chairman Theodore Vassilakis called it a "very exceptional day" for (CRM), which commenced scheduled flights with 2 new Avro RJ-100s on domestic routes exactly 10 years ago. Publicly listed, (CRM) currently operates a fleet of 31 airplanes of which 21 are new A320s/A321s that constitute part of an order for 27 placed in 2005. (CRM) achieved a major milestone last year when it surpassed rival Olympic Airlines (OLY) in passenger numbers. (CRM) carried 6 million in 2008, up +14% over 2007, and its domestic market share is 58%. It has been profitable since 2003 and posted net earnings of +€29.5 million/+$41.3 million in 2008. Managing Director Dimitris Gerogiannis said that expected benefits from joining the (SAL) include increased revenue and additional passengers through network connectivity in addition to "operational improvements by sharing terminal facilities in a large number of airports, cost reductions through joint sourcing projects, know-how exchange and synergies in Information Technology (IT)." He confirmed that (CRM) will migrate to (SAL)'s common Amadeus Altea platform for reservations, inventory, ticketing and check-in. It is confident it will finalize its integration by May 2010. The (SAL) currently has 21 full members, with an additional four preparing to join.

(CRM) signed on with Travelport to sell its services through the Galileo and Worldspan distribution systems. As with many other recent airline Global Distribution Systems (GDS)s, this one obligates (CRM) to provide all of its fares to the Travelport systems. That means no selling cheaper fares that only its website visitors can access.

September 2009: Aegean Airlines (CRM) earned a +€13.4 million/+$19.2 million profit in the 1st half of 2009, more than double the +€5.5 million reported in the year-ago semester. Revenue rose +5% to €275.4 million. It cited falling oil prices and reduced maintenance and fuel costs associated with its recent fleet renewal. It took delivery of 8 A320 family airplanes during the 6-month period. (CRM) transported 2.9 million passengers, up +9%, boosted by a +20% gain in international boardings to 1.3 million. It currently operates 31 planes on 48 routes.

(CRM) will launch service from Athens to Madrid (daily on December 1) and Vienna (5x-weekly) on December 10).

Lufthansa Technik (DLH) (LTK) will provide "C" maintenance checks on 14 A320s, 3 A321s and 2 737-400s for (CRM) from December 2009 to February 2011 at (LTK) Malta and Shannon Aerospace (SLD).

October 2009: Aegean Airlines (CRM) expects 2010 and 2011 to be "very difficult years," but it is targeting growth "even in a tough environment" thanks to the Star Alliance (SAL) membership expected to take effect next May, Managing Director Dimitris Georgiannis said.

Speaking at the European Regions Airline Association Annual General Meeting in Interlaken, Gerogiannis said the (SAL) membership "gives us the possibility to get extra feed into Athens, like we have done in the past four years with Lufthansa (DLH)," with which it already has a partnership. (CRM) currently holds a 50% domestic market share but hopes to increase its international profile. (CRM) already is planning to launch flights to Moscow and Tel Aviv. (CRM) will transfer its 2x-daily, London service from Stansted to Heathrow on October 25 and will code share with bmi (BMA). Gerogiannis said (CRM) is in better shape than some European counterparts because it never has depended much on full-fare business (C) passengers. (CRM) has no plans to introduce long-haul flights. "We have to be realistic," he said, adding that (CRM) expects to transport 6.5 million passengers this year, up from 6 million in 2008. Analysts expect another profitable year for (CRM), which concluded last year +€29.5 million/+$44 million in the black.

(CRM) flights to Madrid and Vienna, both Star Alliance (SAL) hubs (Spanair (SPP) and Austrian (AUL)) start in December. (CRM) signed a code share pact with fellow (SAL) member bmi (BMA) to help boost its new London Heathrow (LHR) route

(CRM)'s last 4 737 Classics will leave the fleet by December. It also operates 21 A320 family airplanes, 6 Avro RJs and 2 ATR 72s on (CRM) routes to smaller islands from Athens. "The current average age of the fleet is about 2 years. Leaving out the Avros, the average would be lower," he said. 6 more A320 family airplanes are scheduled to join the fleet, with delivery dates depending on (CRM)'s financial situation and the market outlook.

(CRM) will operate its B AE Avro RJ100s on its Greek Island routes.

December 2009: (AD) Aerospace won a contract from Aegean Airlines (CRM) to fit its CabinVu cockpit door monitoring system on a 737-400.

January 2010: Aegean Airlines (CRM) announced new routes:
Athens - Belgrade: daily ARJ-100 service has started on January 1;
Athens - Tel Aviv Ben Gurion: daily A320-200 service has started on January 1;
Heraklion - Athens - Paris (CDG): daily, A321-200 service starting on March 28;

(CRM) will however give up its Thessaloniki - Milan Malpensa route on March 26.

A320-232 (4165, SX-AGB), delivery.

February 2010: Greek air traffic controllers planned a 24-hour strike, grounding all flights to and from Greece. Aegean Airlines (CRM) said it was "forced to cancel all flights on its network."

(CRM) announced that "discussions" between its main investor, Vassilakis Group, and Olympic Air (OLY) controlling shareholder, the Marfin Investment Group "have taken place concerning the potential of a future cooperation," without elaborating. (CRM) bid unsuccessfully for Olympic (OLY)'s assets when the Greek government privatized the airline last year.

After being unsuccessful in its bid to purchase Olympic Air (OLY) from the Greek government last year, Aegean Airlines (CRM) announced a merger designed to create "a national airline champion with enlarged presence in the European market as well as seamless coverage of even the most remote islands of our country."

The new company eventually will take the Olympic name and will be listed on the Athens Exchange. Olympic Handling and Olympic Engineering will be wholly owned subsidiaries, while Aegean (CRM) majority investor, the Vassilakis Group and current (Oly) owner, the Marfin Investment Group (MIG) will be equal partners in the venture. There also will be minority shareholders. (CRM) offered more money than (MIG) for Olympic (OLY) 1 year ago, but the Greek government chose the latter because of competition concerns.

Aegean (CRM) Chairman Theodoros Vassilakis and (OLY) Chairman & (CEO) Andreas Vgenopoulos "are expected to lead the new company, ensuring the smooth integration of the business," according to Aegean (CRM). The merger is subject to European Commission (EC) approval and no timetable was announced. "The relative size of our competitors within the (EU) necessitates the joining of the two main Greek airlines," Vassilakis said, adding that the merger will "ensure the long-term development and viability of the 2 airlines and protect the levels of employment in the sector." Vgenopoulos issued a statement echoing those sentiments, adding that the deal "at the same time preserves and strengthens the Olympic (OLY) brand name, an inherent piece of our national tradition."

Aegean (CRM) currently operates 18 A320s, 4 A321s, 4 737-400s and 6 Avro RJ 100s. (OLY) flies 9 A320s, 8 A319s, 10 Dash 8-Q400s and 5 Dash 8-100s, for a combined fleet of 64 airplanes. (CRM) currently serves 24 domestic and 26 international destinations, while Olympic (OLY) flies to 41 Greek and 15 international airports. Employee rolls comprise 2,500 at (CRM), 1,300 at Olympic Air (OLY), 2,000 at Olympic Handling and 50 at Olympic Engineering. The parties did not say whether the merger would result in any layoffs.

Aegean (CRM) was scheduled to join the Star (SAL) Alliance by June.

March 2010: Aegean Airlines (CRM) remained well in the black last year, although net profit fell -22% to +€23 million/+$31.1 million from the +€29.5 million earned in 2008 as a result of the recession and the decline of the Greek economy during the final 4 months of the year.

Revenue increased +2% to €622.7 million mainly due to what (CRM) called a "significant" international network expansion, which included new routes from Athens to Brussels, Berlin Tegel, Barcelona, Venice, Istanbul Ataturk, Vienna, and Madrid.

(CRM), which was invited to join the Star Alliance (SAL) in May last year and which announced last month the launch of merger negotiations with rival Olympic Air (OLY), carried 6.6 million passengers in 2009, up +10%. Domestic boardings rose +2% to 3.8 million, while the number of passengers carried on international flights increased +22% to 2.8 million. It operates 32 airplanes.

Managing Director, Dimitris Gerogiannis warned that "the conditions that we are facing in 2010 are even more difficult [than in 2009] given the deteriorating economic conditions in Greece" and said Aegean (CRM) hopes "to ensure the long-term prospects of the company by effective cost management, maintaining the quality of services provided while improving the attractiveness of our fare offers and securing and implementing the necessary local and international cooperations and alliances." The merger with Olympic (OLY) is expected to be completed in 2011.

May 2010: Aegean Airlines (CRM) reported a 1st-quarter net loss of -€25.6 million, reversed from a +€4.6 million net profit in the year-ago period, despite a +3% hike in revenue to €114.8 million and a +17% jump in boardings to 1.4 million.

Scheduled flight revenue declined -3.3% to €91.2 million, whereas revenue from charter operations heightened +38.5% to €1.8 million and revenue from passengers’ airports charges was up +43.1% to €16.6 million. The -€29.5 million operating loss compared with a breakeven result last year.

(CRM), which is in the process of merging with competitor Olympic Air (OLY), attributed the loss to a gradually deteriorating demand environment, the rise in fuel prices, increased domestic competition that resulted in “significantly lower average revenue per flight” and the negative contribution of new international routes to Madrid, Vienna, Belgrade, and Tel Aviv. It added that it expects these will have a positive contribution in the summer.

"The current crisis requires immediate response,” Managing Director Dimitris Gerogiannis said. "Having secured the qualitative advantages and the critical alliances for a successful future path, it is now critical to focus on managing all the elements of our company’s costs in relation to capacity, network, and fleet. It is going to be a challenging path but we are confident that we have the resources and elements to be successful."

(CRM) did not give an outlook or a detailed update on the merger, saying only that “the transaction is expected to yield significant synergies from the creation of a ‘National Champion’ that can compete effectively in the common European airline space. Nevertheless, due to the required approvals, the benefits can be reaped mainly from the beginning of 2011.”

July 2010: Aegean Airlines (CRM) became the 28th member of Star Alliance (SAL) in ceremonies in the Greek capital, just over one year after it officially was invited to join. "One more time the (SAL) alliance family is growing today, one more time we are adding a high-quality brand name to our impressive list of world-class airlines, one more time are we proud to call an exciting country our home," (SAL) (CEO) Jaan Albrecht said. (SAL) added (TAM) (TPR) as a member in May. Despite some delay, Air India (AIN)/(IND) is on course to join by the end of this year or early next year, he confirmed.

"The (SAL) Alliance can simply not afford not to have a home here," Albrecht said, noting that Greek people have traveled the world long before many others and they "continue to enjoy traveling and connecting communities in every corner of the globe." (CRM)'s induction into (SAL) extends (CRM)'s and the grouping's network to/from/within Greece to >1,500 weekly flights to 69 destinations in 27 countries.

He heaped praise on its new member, describing (CRM) as a "fascinating" airline because of its "young and successful history, the stringent and entrepreneurial business concept of its owners and its management, and its competitiveness in the marketplace based on its dedication to cost-efficiency, quality and service."

(CRM) Chairman Theodore Vassilakis said, "Joining the (SAL) Alliance is an honor and a great opportunity for (CRM). Our customers will enjoy recognition, loyalty benefits and end-on-end global service that the (SAL) Alliance is renowned for. At the same time, there will be a 'star' on the map, showing that services and access to Greece have been significantly upgraded."

(CRM) operates a fleet of 30 airplanes covering 26 domestic and 28 international short/medium-haul routes with >150 daily flights. It became Greece's largest carrier in terms of passengers in 2008 and is awaiting approval from the European Commission (EC) to merge with rival Olympic Airways (OLY), which had been in alliance talks with the SkyTeam (STM) alliance.

"They lost this one," Albrecht joked, confirming that the enlarged entity (which will carry the "Olympic" name) will be a full (SAL) member if the planned merger wins regulatory approval.

Aegean Airlines (CRM) reported a net loss of -€32.6 million/-$42 million for the 2010 1st half, citing the deteriorating Greek economy, a €6.6 million extraordinary social contribution charge and “overcapacity prevailing in certain markets.”

This compares with a +€13.4 million profit in the year-ago period. Revenue declined +3% to €267.4 million as a result of the “significant” pressures on average revenue per flight due to the economic crisis, particularly as far as Greek-originated traffic is concerned.

(CRM) transported 2.9 million passengers in the first half comprising 1.5 million domestic boardings, down -11%, and 1.4 million international boardings, up +18%. Load factor increased +4.2 points to 64.8% LF.

Aegean (CRM) Managing Director Dimitris Gerogiannis said (CRM) will “proceed with the necessary adjustments on our network and costs, with immediate effect, so as to protect (CRM) during the crisis. At the same time, our efforts concentrate on fully exploiting and completing our past strategic choices, such as our entry into the Star (SAL) Alliance and the agreement with Marfin Investment Group/Olympic Air (OLY).” Shareholders of (CRM) and (OLY) in February agreed to merge the two airlines; the European Commission (EC) last month opened an investigation into the deal, citing competition concerns.

(CRM) reduced its fleet by three airplanes in the first half: It returned two RJ Avros to their owners in July and will return two ATR 72s in September. It will cut 2 domestic routes, from Athens (ATH) to Ioannina and Kavala, and 3 international routes from (ATH) to Tirana, Belgrade, and Vienna, which (CRM) said “are particularly loss-making.”

Gerogiannis said, “We must focus on destinations where we maintain a competitive advantage either due to our new A320 fleet or due to our entry into the Star (SAL) Alliance. A possible imminent approval of our agreement with (OLY) could allow us to ably present on the summer of 2011 an expanding profile which is necessary for both our company and our country.”

Perhaps it was inevitable, a reflection of the country’s sancient love of theatre and public spectacle. Yet it would have been a lot more simple and straightforward if the Greek government had just selected Aegean Airlines (CRM) to purchase its perennially loss-making flag carrier Olympic Airlines (OLY) in early 2009. Instead, it rejected Aegean (CRM)’s bid in favor of choosing Marfin Investment Group to take over the flailing airline. This year, in a surprise turn, Marfin agreed to merge (OLY) with (CRM).

“No comment,” laughs Dimitris Gerogiannis (CRM)’s Managing Director, when reminded of the convoluted circumstances of the transaction. “Greeks learn the hard way. We will now focus on making the merger work,” he says, emphasizing, “The problem is not the merger. Not merging would be the problem. This is a viability issue.” The European Commission (EC) set a provisional deadline of July 30 to determine whether to clear the transaction or open a Phase 1 investigation.

(CRM), which launched domestic services in 1999 with a pair of new Avro RJ-100s, became Greece’s leading airline in 2008, when it carried 6 million passengers—surpassing (OLY), which carried 5.3 million, and attained a 58% share of the domestic market. Despite the global downturn that began that year, it carried 6.6 million passengers in 2009 and managed to earn €23 million/$31.1 million on revenue of €622.7 million.

The surprise tie-up with (OLY), is driven by “economic and business realities,” Gerogiannis said, acknowledging that the country’s escalating economic crisis and the government’s austerity measures affecting consumer spending were a “catalyst” in the talks. “It was already clear in December that Greece was in trouble,” he says, declining to identify which side initiated merger discussions. “When shareholders on both sides are successful and capable people it’s not a matter of who has taken the initiative. The initiative has been taken owing to the externalities of the market and the discussions are a natural conclusion.”

In announcing the merger last February, (CRM) said the deal is intended to create “a national airline champion with enlarged presence in the European market as well as seamless coverage of even the most remote islands of our country.” The new company eventually will take the "Olympic" name and will be listed on the Athens Exchange. Olympic Handling and Olympic Engineering will be wholly owned subsidiaries. Aegean (CRM) majority investor, the Vassilakis Group and Marfin will be equal partners in the venture, while (CRM)’s other 5 founding shareholders also will participate thus giving (CRM) a majority in the merged company.

“Consolidation is the name of the game in the European airline industry. You need scale to survive in this very competitive environment,” he continues. “Greece has only 11 million inhabitants and is located on the periphery of Europe. We are not in the middle of a rich catchment area, quite the contrary, yet we have two full-service carriers (FSC). This is impossible to sustain. As a matter of fact, most countries in Europe don’t have more than one major full-service carrier. Even Germany and France, with a much larger population and a Gross Domestic Product (GDP) that is 7 to 10 times higher than Greece’s, only have one genuine (FSC). And when you look at counterparts in similar-sized countries to Greece, eg, (TAP) Portugal, Austrian Airlines (AUL), Finnair (FIN), their revenue is more than double the combined revenue of (CRM) and (OLY).”

(CRM), which became the Star Alliance (SAL)’s 28th member on June 30, operates some 150 daily flights on a network spanning 26 domestic and 28 international short/medium-haul routes with a fleet of 30 airplanes, comprising 22 new A320/A321s out of a total order for 27, 6 RJ-100s and 2 ATR 72-500s operated by SwiftAir (SWF). Last year, it returned 4 737s to their lessors and took delivery of 6 A320s and 2 A321s. 2 RJs are in the process of being redelivered to their owner. 5 A320s are dedicated to charter operations. The average airplane age is 3.5 years, down from 10 years in 2006.

Its main base is at Athens International (ATH) with secondary hubs at Thessaloniki, Greece’s 2nd-largest city, and Heraklion. 4 of its domestic routes are public service only (PSO) routes. Its busiest scheduled route is (ATH) - Thessaloniki, which it serves up to 11x-daily with A320s. Despite the adverse economic environment, it launched several new routes in the past winter schedule: from (ATH) to Vienna, Madrid, Tel Aviv, and Belgrade, but it pulled services from (ATH) to Sofia and Bucharest. In the summer timetable, it launched (ATH) - Kalamata and the (PSO) routes. It competes head-to-head with (OLY) on most of its network; conversely, it is spared from domestic competition from a based Low Cost Carrier (LCC).

“But probably not for a lot longer,” Head of Network Planning & Scheduling, Tassos Raftopoulos believes. “The penetration of (LCC)s at Athens is high and many no-frills carriers operate to other Greek airports as well.” EasyJet (EZY), for instance, is already the 4th-largest operator at (ATH), with 6 routes and about 10x-daily flights. It also has 7 routes to/from Heraklion, 5 from (SKG) and 4 to/from Mykonos. Ryanair (RYR) this summer launched direct flights to Rhodes, Kos, and Volos.

For several years following its launch, (CRM) focused on the domestic market. However, once it felt it had suitable coverage, “We switched our emphasis to international development. We had just 8 international destinations in [summer] 2006; we have 20 now,” Gerogiannis said. It is notable that international boardings doubled from 1.4 million in 2006 to 2.8 million in 2009, whereas domestic enplanements increased +23% from 3.1 million to 3.8 million.

International boardings rose +22% in 2009 over 2008 versus a +2% increase for the domestic market. They jumped a further +42% in the 2010 1st quarter, while domestic passengers climbed just +2%. Today, international operations represent about 60% of total revenue.

“(CRM) has always supported a very prudent and focused growth,” he explained. “We believe you have to concentrate on specific tasks or goals, and once you do this well you can expand onto other objectives.” He is resolute that the carrier, or the merged entity, will not venture into long-haul services in the next 3 years. The many parked former Olympic Airlines (OLY) A340s at Athens are a permanent reminder of past aspirations of the carrier and the country, he admits, but “when we do merge, it is not to destroy value. It is to establish value. Being in this business for a decade, we have learned a few things, including that it is very difficult to earn a little money and very easy to lose big money if you embark on strange adventures. You have to be prudent. Once you believe you can do miracles, the problems start.”

Owing to its “very prudent growth,” (CRM) has posted annual profits in each of the past 7 years. Over the last 5 years, revenue rose by a +17% (CAGR). Although net profit was down -22% last year compared to 2008 owing to the global recession, the decline of the Greek economy and competition from the new (OLY) during the final 3 months of the year, it was one of just a few profitable listed airlines in Europe. The +2% rise in revenue mainly was owing to its significant international network expansion, which included new routes from Athens to Brussels, Berlin Tegel, Barcelona, Venice, Istanbul, Vienna, and Madrid.

For the 1st quarter of the current financial year, seasonally the weakest, (CRM) reported a net loss of -€25.6 million, reversed from a +€4.6 million profit in the year-ago period, despite a +3% hike in revenue to €114.8 million. The -€29.5 million operating loss compared with a breakeven result last year.

The 50-year-old Managing Director, who holds a Ph D in Electrical Engineering from Yale, remains careful in his outlook for 2010 and compares it to the Delphi oracle. “Seeing the very uncertain environment in Greece and the austerity measures in several other European countries, it is extremely difficult to make predictions. What is clear is that demand and yield are falling, particularly on domestic routes where we witnessed a decline of over -15% in June. On international routes, yields are also under pressure and there is [an] outspoken trend to late bookings.”

He feels that overall (CRM) is well-prepared to manage the recession, pointing to its “competitive” cost base (CASK was €0.065 in 2009, 21% lower than 2008), Star (SAL) membership, the upcoming merger and its solid operating financial position “by design” in terms of cash position (€184.9 million as of March 31) and very limited exposure to loans. “Yes, we have a strong position to deal with the crisis but we have to take additional measures,” Gerogiannis confirms. In line with the slowing demand, (CRM) is reducing capacity. The planned delivery of three new A320s scheduled from February through April was deferred to 2014 and additional adjustments will be made if market conditions further deteriorate in order to “safeguard the stability and viability of the company.”

Despite the pressure on demand and yields, (CRM) will not make any changes to its full-service approach, he states, insisting it will continue offering passengers a dual-class cabin configuration, high-quality in-flight catering and in-flight entertainment at no extra charge (it received the Skytrax World Airline awards as Best Regional Airline in Europe and Best Cabin Crew in South Europe for 2009).

“We made the conscious decision to be a full-service carrier when we ordered our new Airbus (EDS) fleet in 2005. They are not configured in a maximum seats configuration but with 168 seats on the A320s and 195 on the A321s,” he said, adding, “Among the basic pillars of (CRM)’s strategy are continuous development, quality service and credibility.”

With membership in Star (SAL) and a looming position as a “national airline champion,” (CRM) certainly does not lack for credibility. The longer-term question is whether it can continue its winning ways following the merger with (OLY).

Star Alliance (SAL) partners Continental Airlines (CAL) and Aegean Airlines (CRM) announced plans to start code sharing on (CAL)'s flights between its Newark (EWR) hub and Athens (ATH). (CAL) will also place its code on selected flights operated by (CRM) in Europe. Effective immediately, (CRM) will place its A3 code on (CAL) flights between (EWR) and (ATH). Pending government approval, (CRM) also will code share on (CAL) flights from (EWR) to/from Paris Charles de Gaulle and Rome Fiumicino.

(CAL) will place its code on (CRM) domestic flights from (ATH) to Thessaloniki, Heraklion, Rhodes, Mykonos, Santorini, Chania, as well as on (ATH) - Larnaca flights. (CAL) said it will eventually code share on (CRM) flights from (ATH) to London Heathrow, Munich, and Frankfurt.

Aegean Airlines (CRM) is a regional airline operating scheduled domestic services from Athens & Thessaloniki to link 15 major Greek destinations, in addition to a dozen international destinations in Albania, Bulgaria, Cyprus, Egypt, Germany, Italy, Romania, and the UK. Charter flights are also undertaken.

Aegean Airlines (CRM) became the 1st operator to commit to upgrading its A320 fleet with the "FANS-B+" retrofit solution offered by Airbus (EDS), enabling airplane/Air Traffic Control (ATC) datalink without voice backup. Deliveries from (EDS) of the kits and service bulletins associated with the upgrade will be aligned with airplane "C" maintenance checks beginning in January 2011.

According to Airbus (EDS), the Datalink Services Implementing rule applying to airlines operating in Europe comes into effect on January 1, 2011 for new airplanes and in February 2015 for in-service airplanes.

It has however given up its routes from Athens to Bucharest Otopeni, Kefallinia, Limnos, and Sofia. It will terminate its flights from Athens to Ioannina and Tirana on September 13, and from Athens to Belgrade, Kavala, Venice Marco Polo, and Vienna on October 30.
(CRM) has retired its last 737-400 and has started phasing out its ARJ-100 fleet. It will also return its two ATR 72-500s wet-leased from Swiftair (SWF) by the end of September. (CRM) has currently temporarily wet-leased an A320-200 from Olympic Air (OLY).

Brussels Airlines (DAT)/(EBA) will launch a 2nd daily, Brussels – Athens (ATH) frequency in March 2011 aboard an A319. The flights will carry the Aegean Airlines (CRM) code. (CRM) flights from (ATH) to Thessaloniki, Rhodes, Heraklion, and Chania in Crete will carry the SN code.

January 2011: The European Commission (EC) has blocked a merger between Aegean Airways (CRM) and Olympic Air (OLY), concluding that the proposed tie-up would have resulted in a “quasi-monopoly on the Greek air transport market.”

The (EC) opened an antitrust (ATI) probe into the proposed combination last August. “We took this decision to protect consumers,” (EC) VP Competition Joaquin, Almunia said, noting that the merger would have “led to higher fares for air passengers in Greece, both Greek and European, and possibly a service of lower quality.”

The (EC) acknowledged it did not find significant competition problems on short-haul international routes; however, its investigation showed that together, the duo controls >90% of the Greek domestic air transport market and there were “no realistic prospects that a new airline of a sufficient size would enter the routes and restrain the merged entity's pricing.” It asserted that the proposed merger would lead to a quasi-monopoly between Athens and Thessaloniki, the country's 2nd-biggest city, and between Athens and eight island airports, namely Herakleion and Chania, both in Crete, Rhodes, Santorini, Mytilini, Chios, Kos, and Samos. None of these are routes covered by public service obligations.

Almunia said the (EC) “did its best” to find a solution, “but unfortunately the remedies offered by the companies would not have adequately protected the interests of the four million consumers that use the routes.” She pointed out that “prohibition decisions are never easy to take. This is only the third such decision in over six years." The last also involved 2 airlines based at the same airport: Ryanair (RYR)'s attempted hostile takeover of Aer Lingus (ARL).

The carriers (CRM)/(OLY) offered substantial remedies, including the release of slots at Athens and other Greek airports, to obtain a clearance for the merger, which they see as essential to survive in view of Greece’s depressed economic situation and the small size of the market. But the “nature and the scope of these remedies were insufficient to ensure that customers would not be harmed by the transaction. This is notably because the main problem in this case — unlike in many previous airline cases — was not the availability of slots, which are available at Athens airport and at most Greek airports,” the (EC) reasoned.

Commenting on the (EC)’s decision, Aegean (CRM) Chairman, Theodore Vassilakis said that “an important opportunity for a consolidated representation in the European aviation market has been lost. We will adjust and continue. Our track record shows that we can succeed through challenging times.”

“The (EC) decision will have negative consequences for consumers as well as our country’s economy while it will benefit foreign competitors,” warned Marfin Investment Group (MIG) Chairman, Andreas Vgenopoulos. Marfin owns Olympic (OLY). The 2 agreed to a merger in February 2010.

The companies (CRM)/(OLY) said they will review the (EC) decision before deciding on possible further actions.

February 2011: Aegean Airlines (CRM), whose proposed merger with competitor Olympic Air (OLY)was blocked by the European Commission (EC) last month, said it expects to report a net loss of -€22 to -€24 million/-$30 to -$33 million for 2010, and warned that a loss for the current year is “very likely” owing to higher fuel prices and continued weak demand in the domestic market. It estimated 2010 revenue at about €590 million.

“Despite the difficult economic environment, (CRM) will continue during 2011 to develop its international presence, with prudent gradual steps, in line with its strategic direction of the last 5 years,” Managing Director Dimitris Gerogiannis said. “At the same time, we will continue to invest in further improving our productivity and unit cost efficiency toward international best in class levels.”

(CRM) transported 6.2 million passengers last year, -5% fewer than in 2009. International boardings increased +9% to 3.06 million, as it added new routes to its network. Passengers carried in the domestic network, however, declined -16% to 3.17 million, with a significant reduction in average fare due to weak demand. To address the effects of the Greek economic crisis, it reduced fleet and capacity significantly, mainly in the domestic network, through the phasing out of 4 737s, 2 ATR 72-500s and 2 Avro RJ-100s.

March 2011: Aegean Airlines (CRM) posted a net loss of -€23.3 million/-$32.4 million for 2010, reversed from a +€23 million net profit in 2009, confirming earlier predictions that the Greek airline would suffer a loss “of over -$22 million” for the year. It cited weak domestic demand, a significant reduction in average fares and rising fuel prices as the main contributors to the loss.

(CRM), which announced earlier this month it will appeal the European Commission (EC)’s decision to block its proposed merger with Olympic Air (OLY), said the deficit was burdened by an €8 million extraordinary social contribution charge. Revenue decreased -5% to €591 million on a -5% decline in passengers to 6.2 million, comprising a -16% drop in domestic enplanements to 3.17 million and a +9% rise in international boardings. Load factor gained +2.3 points to 68.1% LF.

“The challenges of the acute recession of the Greek economy and the significant rise in the price of fuel will continue to affect the company’s results during the current year,” Managing Director Dimitris Gerogiannis warned. He stressed that (CRM) will “redouble” its efforts to further improve productivity and competitiveness as well as develop new programs and services.

With the start of the summer schedule, (CRM) will open a base in Larnaca with three new 168-seat A320s supporting daily London Heathrow (LHR) service, and new summer routes to 6 destinations in Greece: Heraklion, Rhodes, Chania, Kos, Mykonos, and Santorini. This will bring to nine its network out of Cypriote airport in Cyprus. (LHR) service will commence March 27.

(CRM) will introduce new routes from Athens (ATH) to Moscow and Bologna, and increase its frequencies from (ATH) to (LHR) to 4x-daily, Rome Fiumicino (up to 3x-daily), Paris (CDG) (up to 3x-daily), Brussels (2x-daily), Barcelona (up to 10x-weekly), and Madrid (up to 10x-weekly). (CRM) will also strengthen its base at Thessaloniki with new routes to Moscow and Paris, bringing to 18 the number of domestic and international destinations it serves directly. It has 5 A320s based at (SKG).

(CRM) announced it acquired 4 slots at (LHR) and (CDG) from Olympic Air (OLY).

(CRM) has introduced flights between Athens (ATH) and Budapest (BUD), two airports in which German company Hochtief AirPort has an interest. The route, which launched on 9 March, will operate 4x-weekly (Monday, Wednesday, Friday, Sunday) in the morning using 168-seat A320s, configured in 2 classes. “We are delighted to see the popular Athens route reinstated so quickly following the cessation of Malev (HGA) operations,” said Kam Jandu, Budapest Airport’s Aviation Director. “This is a great direct link with Greece by the country’s largest airline and the convenient flight schedule will enable business and leisure passengers from Hungary to make easy flight connections to and from the rest of Greece.” Malev (HGA) was operating the route on a daily basis before it ceased operations in early February.1

May 2011: Despite Greece's economical problems, Aegean Airlines (CRM) 1st quarter losses were €16.3 million/-$23 million (-Euro 25.6 million), despite weak demand in Greece, combined with the +40% year-over-year rise in the price of fuel. Revenues shrank by -8% and operating expenses were down -13%, due to capacity downsizing and cost cutting measures.

(CRM) boarded 1.14 million passengers in the 1st quarter, a -15% reduction compared to the year-ago period, by operating -18% less flights. International enplanements fell -12% to 530,000 and passengers carried on domestic routes fell -18% to 614,000. Reported traffic (RPK)s declined about -10% to 1.03 billion on a -7% reduction in capacity to 1.72 billion (ASK)s. Load factor averaged 59.6% LF, down -2.2 points on the year-ago period. (CRM)’s fleet as of March 31 comprised 26 airplanes: 18 A320s, 4 A321s, and 4 Avro CRJ-100s, which subsequently left the active fleet and will be redelivered to their owner in the 2nd quarter. They have been replaced with leased A319/A320s.

(CRM) is now building up its schedules to France, Israel, Italy, Russia and the UK, in some instances using Cyprus as its base.

July 2011: US Airways (AMW)/(USA) recorded an "all-time record" of 87.1% LF for its average mainline June load factor, up +0.2 point over June 2010. It operated 5.73 billion mainline traffic (RPM)s for the month, up +2.5% year-over-year, against a +2.3% lift in capacity to 6.58 billion capacity (ASM)s. (AMW)/(USA) expects 2011 system capacity to be +1% higher than 2010; mainline capacity is projected at +1.5% higher. It is scheduled to take delivery of 12 A321s in the second half of 2011 and 12 A320 family airplanes in 2012 (to replace 737-300s/-400s).

(AMW)/(USA) reached a code share agreement with Aegean Airlines (CRM). Subject to both USA (DOT) and Greek government approval, (AMW)/(USA) customers will gain access to Athens (ATH) and Thessaloniki via (CRM) service from London Heathrow (LHR), Munich (MUC) and Rome (CIA), as well as access to Crete, Mykonos, Santorini, Kos, Rhodes, Larnaca and Cyprus, through the (CRM) (ATH) base. (CRM) customers will gain access to Philadelphia (PHL) via (AMW)/(USA) seasonal service to (ATH), as well as "numerous connecting opportunities" to (PHL) and Charlotte, Paris Charles De Gaulle, Madrid, Frankfurt, (CIA), (LHR), (MUC) and Brussels.

Scandinavian Airlines (SAS) and Aegean Airlines (CRM) reached a code share agreement, under which (SAS) will place its code on A3 flights from Athens (ATH) to Chania, Heraklion, Kos, Larnaca and Rhodes, as well as between (ATH) and Brussels, London Heathrow (LHR), Milan Malpensa (MXP), Paris (CDG), and Rome Fiumicino (FCO). In return, the A3 prefix will be placed on (SAS) flights between Copenhagen (CPH) and (ATH) as well as flights between (CPH)/Oslo/Stockholm Arlanda and Brussels, (LHR), (MXP), (CDG) and (FCO).

August 2011: Aegean Airlines (CRM) reported a -19.8 million euro/-$28.7 million net loss for the 2011 first half, an improvement over the -32.6 million euro deficit incurred in the year-ago period, but warned it is heading for a full-year loss as Greek economic crisis continues to bite. 2nd-quarter deficit was -3.5 million euro compared to the -7 million euro loss posted in the 1st quarter. Revenue increased +10% to 295.2 million euro with 2nd quarter sales increasing +24% and reversing the 1st quarter’s decline.

“The environment continues to be particularly challenging, with the recession in Greece and higher fuel costs leading to losses for the full year of 2011, despite productivity improvements achieved,” Managing Director Dimitris Gerogiannis said.

Total passengers carried increased +1% to 2.9 million, with a -8% fall in domestic boardings to 1.4 million but a +11% rise in international traffic. In the 2nd quarter, total passenger numbers rose +15% and international passengers recorded a +29% hike. Load factor slipped -0.2 points to 64.8% LF. (CRM) increased (ASK)s year-on-year by +13% as it deployed larger airplanes and increased average stage length by +16%. (CRM)’s fleet as of June 30 included 22 A320s, four A321s and three A319s. Four Avro RJ-100s were delivered back to their owner during the reporting period. (RASK) and yield fell by -3% to 6.55 cents and -4% to 9.90 cents, respectively.

October 2011: Aegean Airlines (CRM) said it is “adapting and changing to the difficult Greek environment” and vows it will not relinquish its high-quality service approach. The Greek sovereign debt crisis and austerity measures introduced by the government are affecting demand and causing recurring strikes by Air Traffic Control (ATC) workers.

“The positive news is that our costs (other than fuel) have been reduced and that revenues are increasing,” (CRM) Head Network Planning & Scheduling, Tassos Raftopoulos said. “We had a good summer with high load factors,” he said, noting the base of this growth was incoming traffic to Greece.

In August, Greece’s largest airline reported a -€19.8 million/-$27.2 million net loss for the 2011 1st half, an improvement over the -€32.6 million deficit incurred in the year-ago period, but warned it is heading toward a full-year loss as the Greek economic crisis continues. “Demand in Greece is difficult and we will further reduce capacity in the winter schedule to safeguard the financial position of the company,” Raftopoulos said. He stressed the airline “is not pulling out” of the domestic market but “concentrating growth on international routes and big routes.” He noted (CRM) abandoned routes that “could not sustain an A320 operation.”

In the present (IATA) summer timetable, (CRM) is operating 35 international and 24 domestic routes. It operates a streamlined fleet of 22 A320s, 4 A321s and 3 A319s after 4 Avro RJ100s were delivered back to their owner earlier this year. This winter, domestic routes could see a reduction in seats of -15% to -20% on last winter’s schedule, he said.

(CRM) is considering leasing some airplanes this winter and launching several new initiatives next summer. In June, it set up a base in Cyprus with 3 A320s flying routes to Greece and the UK, including London Heathrow.

January 2012: The Star (SAL) Alliance’s Greek member, Aegean Airlines (CRM) reported a +4% growth in passengers carried last year to 6.5 million, owing to strong growth on its international network. International enplanements exceeded domestic passenger traffic for the first time.

Passenger numbers on its international routes rose +15% to 3.5 million, whereas passengers carried on domestic routes fell -6% to 3 million (and by -15% in the last quarter of the year). (CRM) said domestic boardings declined despite promotional offers that resulted in a -20% lower domestic average fare compared to 2007.

“We invest on strengthening our international presence and on supporting the Greek tourism both in Athens and in regional airports. Within the past 6 years, we have managed to triple the number of passengers traveled on our international network, despite the tough economic environment in Greece, the sharp rise in fuel prices and the significant high airport fees and taxes in Athens determined by the Greek state,” Managing Director Dimitris Gerogiannis said.

(CRM) operated 102 international routes from 6 airports in Greece: Athens, Heraklion, Rhodes, Kos, Thessaloniki, and Corfu. In response to the worsening Greek economic crisis, (CRM) will operate more direct international flights to/from regional airports. The investment resulted in a growth in international passengers of +37% to/from Rhodes, +23% to/from Heraklion and +10% to/from Thessaloniki to a total of 1.1 million international passengers. (CRM) said UK, Belgium, France, Israel, and Russia markets have registered particularly high growth rates.

The Greek economy shrank by about -6% in 2011, according to the International Monetary Fund (IMF); unemployment was at 16%.

Aegean Airlines (CRM) has given up its Larnaca - Paris (CDG) route on September 11, as well as its Athens - Berlin Tegel route on January 8 and will not resume its Athens - Bologna Marconi and Heraklion - London Heathrow routes next summer but has announced plans for new seasonal services from Heraklion and Kerkyra:
Heraklion - Brussels National: 2x-weekly seasonal A320-200 service starting on March 28;
Heraklion - Munich: 2x-weekly seasonal A320-200 service starting on March 28;
Kerkyra - Brussels National: weekly seasonal A320-200 service between June 1 and September 30.

February 2012: Aegean Airlines (CRM) will launch 4x-weekly, Athens - Budapest A320 service from March 9.

March 2012: Aegean Airlines (CRM) reported a net loss of -€27.2 million/-$36.3 million in 2011, -17% down from the -€23.3 million deficit in 2010 when results were negatively affected by one-off social contribution tax charges of €8 million.

Revenue rose +13% to €668 million, driven by international network expansion and international traffic growth, which helped offset weak demand in the domestic market. (CRM)’s international network of scheduled and charter routes expanded to 102 routes; passenger numbers on international routes rose +15% to 3.5 million, but passengers carried on domestic routes fell -6% to 3 million. Total passenger numbers rose +4% to 6.5 million.

Managing Director Dimitris Gerogiannis said that “cost containment efforts through the fleet homogeneity and productivity gains comma were not enough to offset the consequences of the crisis and the effect of oil prices that rose by +39%. In addition, international expansion yielded commercial benefits but had a short-term burden on financial results, as is the case for any new investment.”

He warned that the environment continues to be weak with a further drop in demand in the 1st quarter of the year. “Within this deteriorating environment, our efforts concentrate on cost cutting initiatives, the improvement of our competitiveness through the offering of attractive fares and the continuous adjustment of our network depending on market conditions, our strategy and any opportunities that arise,” he said.

April 2012: Aegean Airlines (CRM) has started using Olympic Air (OLY) DHC-8-400s on the daily flight between Athens Eleftherios Venizelos International airport (ATH) and Kalamata airport (KLX).

Astra Airlines (SZZ) has emerged as the winner of the reallocation of Greek domestic public service obligation routes with the routes from Athens Eleftherios Venizelos International airport (ATH) to Sitia airport (JSH), and from Thessaloniki Makedonia airport (SKG) to Kalamata airport (KLX), Kerkyra Ioannis Kapodistrias International airport (CFU) and Samos airport (SMI) to be transferred to Astra (SZZ) from Aegean Airlines (CRM). In return, Aegean (CRM) has been allocated the Athens Eleftherios Venizelos International airport (ATH) - Skiros airport (SKU) route that is currently served by Sky Express (Greece) (SEH). The new route allocations will be effective May 1 until March 31, 2016.

May 2012: Aegean Airlines (CRM) has reported 1st-quarter net income of +€104.6 million/+$131 million, slightly worse than for the same period last year. 1st-quarter net loss after taxes deepened to -€25 million from -€16.3 million in the year-ago quarter. Comparable 1st-quarter 2011 results include proceeds of €5 million from the sale of assets. A drop in demand caused by global economic uncertainty (exacerbated by the worsening situation in Greece and compounded by high fuel prices) have all contributed to the decline in profits, according to (CRM).

(CRM) Managing Director Dimitris Gerogiannis said demand for domestic and international air travel continued to suffer in the first-quarter as a result of deteriorating economic conditions. “From the beginning of the 2nd quarter of 2012, we are implementing a new round of cost reduction initiatives,” he said, adding, “Nevertheless, the outlook remains weak with declining tourism demand for the summer season given the negative publicity for Greece.”

1st-quarter passenger numbers fell -7% to just over one million when compared to the year-ago period, despite a -13% decrease in the number of flights operated. International passenger traffic was up +3% for the period, but the domestic market saw a significant -15% decline.

Despite the downturn, the average number of passengers per flight was up to 103 from 96 in the year-ago period. However, lower average fares mean the company was not able to cover rising costs resulting from higher oil prices, according to (CRM). Nevertheless, (CRM) said its balance sheet remains healthy with €158 million of cash and cash equivalents.

Gerogiannis said (CRM) would operate 139 scheduled and charter routes this summer out of Athens and seven regional Greek airports. However, he stressed the airline would remain “flexible to make adjustments depending on market conditions.”

(CRM) carried 6.5 million passengers in 2011 and has been a Star (SAL) Alliance member since June 2010.

Aegean Airlines (CRM) launched a new route from Thessaloniki (SKG) to Tel Aviv (TLV) on May 17. The 2nd-largest Greek city is now connected with Israel’s main airport with 2x-weekly flights, which will be operated with A320s on a seasonal basis until September 20. (CRM) already serves Tel Aviv with year-round daily flights from Athens. (CRM) started a new route from Athens to Skyros. (CRM) launched 3x-weekly, Athens - Prague A320 service on May 24.

July 2012: Aegean Airlines (CRM) launched 2two new seasonal services to Italy from the Greek island of Corfu (CFU). (CRM) now flies from the Greek island across the Adriatic from Italy to both Rome Fiumicino (FCO) and Milan Malpensa (MXP). Each route is operated once a week with A320 airplanes until the beginning of September. The route to the Italian capital, which was launched on July 17, competes with Blu-express (BLX)’s 4 and easyJet (EZY)’s 3x-weekly, while the Milan service is operated against easyJet (EZY)’s 5x-weekly flights.

August 2012: Aegean Airlines (CRM) has reported a 1st-half net loss of -€38.5 million/-$48.3 million, widened -94% from a -€19.8 million loss in the 2011 1st half.

1st-half revenue was €269.4 million, a -9% drop over the same period last year.

(CRM) said political uncertainty deterred international visitors from traveling to Greece (particularly to Athens) during the period of 2 consecutive elections, while the worsening economic crisis contributed to a decline in domestic demand. High oil prices and the weakened euro against the USA dollar made the situation worse.

(CRM) Managing Director Dimitris Gerogiannis said: “The weakness in domestic demand was anticipated, but not the fall in tourism, especially to Athens, during the traditionally strong months of May-June, which weighed on our performance. Tourist arrivals to the rest of the country seem to have normalized after July, but Athens weakness is persisted.”

For the 1st half, passenger numbers were down to 2.7 million, a decrease of -8% on -13% fewer flights compared to the previous year. Load factor improved to 69.5% LF from 64.6% LF, on lower fares. International traffic was 1.5 million passengers, down 2% year-over-year, while domestic traffic fell -14% to 1.2 million passengers.

(CRM) said the fall in international traffic affected its main base in Athens, while international traffic was up +6% at its Thessaloniki, Heraklion, Rhodes, Corfu and Larnaca bases.

Gerogiannis said: “Our efforts on cost reduction are expected to bring more substantial savings during the 3rd and 4th quarter of the year. The weakness and uncertainty surrounding the Greek economy requires further significant adjustments, flexibility and increased focus on seasonal incoming leisure demand.”

The company’s cash position reached €181 million at the end of June.

September 2012: Aegean Airlines (CRM) has recently added flights to the Czech Republic, Georgia, and the Ukraine.

October 2012: Aegean Airlines (CRM) has struck a deal to acquire Olympic Air (OLY) from the Marfin Investment Group for €72 million/$94 million, creating a €1 billion company. (CRM) plans to acquire 100% of (OLY) from Marfin and turn it into a subsidiary. The 2 airlines will operate under their existing brands; their networks will be optimized to improve efficiency and connectivity. Back office functions will also be combined. The European Commission (EC) must approve the deal on competition grounds.

(CRM) first attempted to acquire (OLY) in 2009, but ultimately lost out to current owners, the Marfin Investment Group. In 2010, (CRM) again tried to merge with (OLY), but the (EC) rejected the deal, saying the merger would create a “quasi-monopoly on the Greek air transport market.”

(CRM) Chairman Theodoros Vassilakis said, “Our subscale size, combined with the effects of the unprecedented Greek crisis, restrict our ability to successfully compete within the European and global aviation market leading us to further losses and further reductions of size and scope.”

The 2 airlines posted losses in 2011. (CRM) reported a -€27.2 million loss, from €668.2 million turnover, while (OLY) ended the year -€37.6 million in the red after generating +€240.5 million in revenues.

“Aegean (CRM) still possesses the financial reserves to lead the consolidation of aviation in Greece. The synergies from this agreement will allow us to reduce unit costs and offer enhanced network coverage with competitive prices to the consumers,” Vassilakis said. (OLY) launched operations in 2009, replacing predecessors Olympic Airlines and Olympic Airways, and operates 21 airplanes. It serves 38 domestic and seven international routes and is expecting to carry 2.9 million passengers in 2012.

(CRM) is also Athens-based and operates a fleet of 29 airplanes. This summer, its network included 19 domestic and 51 international routes. By year end, it expects its passenger total to be around 6 million.

November 2012: Aegean Airlines (CRM) for the last summer quarter, earned a net profit of +$38 million despite the severely depressed Greek economy and the fact that in the 1st 2 quarters of the year it was among Europe's worst performing airlines. This was helped by growth at 5 other Greek and Cypriot bases. Luckily, operating costs were down -6%. Domestic fares have been falling for 4 years in a row, but fortunately, international traffic was up by +10% in the 1st 9 months. Nevertheless, it expects a loss for the full year despite the long run of profits in the last 10 years.

This month it agreed to a code share deal with its Star (SAL) Alliance partner, Singapore Airlines (SIA).

(CRM) launched flights on the 2,400 km route across the Europe from Athens (ATH) to London Gatwick (LGW), which was previously served by Olympic Airlines (OLY) until the airline’s demise in late 2009, and then shortly by its successor, Olympic Air (OLY), which ultimately pulled the route in March 2010 as it reshaped its network. (CRM) now offers daily frequencies on the route, all of which will be operated using A321s. The Greek Star (SAL) Alliance airline will compete directly against easyJet (EZY), which it matches in terms of weekly flights. Moreover, (CRM) already operates 12 weekly flights to London Heathrow, which is also served by British Airways (BAB)’s 19 weekly frequencies. No other London Airport has a direct link to the Greek capital.

March 2013: Aegean Airlines (CRM) improved its financial position for the 2012 financial year, but continued to record losses. Net losses were -€10.5 million/-$13.5 million compared to -€27.2m in 2011. Revenue was €653.4 million, -2% lower on 2011’s figure of €668 million.

(CRM) continued to be affected by the dire condition of its national economy. It carried 6.1 million passengers compared to 6.5 million in 2011, with domestic passengers dropping by a sharp -12% despite the average fare being cut by >-10% - the 4th consecutive year in which (CRM)’s average fares have fallen.

International traffic presented a more mixed picture, with traffic to and from Athens declining by -6%, while passenger numbers serving the nation’s regional airports rising +10%. Tourism is vitally important to the Greek economy and Aegean (CRM) reported that its close focus on inbound leisure passengers resulted in improved performance on its international routes.

Load factors increased from 69% LF to 74% LF.

Cost management, plus the slightly more stable conditions of the Greek economy in the 2nd half of 2012, also contributed to Aegean (CRM)’s improved performance. “In 2012 after a difficult start due to lack of visibility about the course of our country in the 1st half of 2012, we have managed to limit our losses and defend our revenue relative to 2011,” Aegean Managing Director Dimitris Gerogiannis said. “The gradual recovery of incoming leisure traffic as of July, as well as our cost management efforts, has contributed to the improvement of our results.

“We need the economies of scale from the acquisition of Olympic Air (OLY), which we can only yield post the pending approval from the European Commission (EC), in order to achieve profitable growth.”

Aegean Airlines (CRM) inaugurated services on the 1,600 km route from Athens (ATH) to Warsaw (WAW) on March 7. The service, previously operated by (LOT) Polish Airlines with daily frequencies until early November 2012, is offered by (CRM) 2x-weekly until April 2, when a 3x-weekly flight will be added. The launch flight was operated by the airline’s “Acropolis Museum” logojet, (SX-DVV). On March 9, (CRM) also commenced seasonal operations connecting Kalamata (KLX) and Stockholm Arlanda (ARN). Weekly flights are offered on the route until August 17. Both new routes are operated using A320s.

(CRM) will begin to sell ancillary products through Sabre. (CRM) will sell pre-paid baggage through Sabre using the electronic miscellaneous document. "It is important that modern airlines maximize revenues generated by the sale of ancillary services,” (CRM) Managing Director Dimitris Gerogiannis said. “Sabre’s global reach into the travel industry community allows us to do so by putting our fares and the pre-paid baggage option on agency desktops around the world.”

Sabre-connected agents will be able to view the discounted pre-paid baggage option at the shopping and pricing stage of a fare search, to book the ancillary products in the same way they would book base airfare. “We’re seeing more carriers turn to ancillary products to boost their revenues,” said Hamish Broom, Sabre’s commercial director-distribution in Europe, the Middle East and Africa. “It’s an area in which we’ve made significant investments so airlines can market and sell their products, and so agents can improve efficiency and service by booking and fulfilling tickets and ancillaries together, while capturing data for their corporate customers.”

(CRM) has apparently offered a concession package to the European Commission (EC) hoping to receive approval for its proposed acquisition of smaller competitor Olympic Air (OLY) instead. According to a statement published by the (EC), the deadline for a decision has now been postponed to April 23 as more time is required to review the concessions offered by (CRM). The 2 Greek carriers agreed to the acquisition of (OLY) by (CRM) for 72 million EUR in October 2012 already but the transaction needs approval by the (EU), which had previously already denied approval for a similar deal. (OLY) is now much smaller, operating just ten DHC-8-400s and 4 DHC-8-100s in the upcoming summer timetable period.

(OLY) will phase out its remaining 2 A319-100s and 3 A320-200s by the end of this month. The airplanes are no longer scheduled to operate on (OLY)'s scheduled domestic and regional flights from March 30 onwards. (OLY) will cancel its services from Athens to Larnaca and Tel Aviv Ben Gurion and from Thessaloniki to Chania, Heraklion, Mykonos, Mytilene, Rhodes and Santorini. Some of the airplanes including A320-200 (3316, SX-OAH) are expected to be transferred to Aegean Airlines (CRM). The European Commission (EC) is currently reviewing the proposed acquisition of (OLY) by (CRM) originally announced in October 2012.

(CRM) inaugurated 3x-weekly services on the 1,700 km route from Athens (ATH) to Geneva (GVA) on April 24. (CRM), which operates the route using its A320s, faces competition from Swiss (CSR)’s 8x-weekly and easyJet (EZY)’s 3x-weekly frequencies. Another Greek airline to offer flights between the 2 cities was Olympic Air (OLY), which served the route briefly between April and December 2008.

May 2013: Aegean Airlines (CRM) has narrowed its 1st-quarter pre-tax losses to -€8.2 million/-$10.6 million, significantly improved from a loss of -€31.2 million recorded during the year-ago period.

(CRM) launched 3 new destinations in the 1st week of May. From the Greek capital, Athens, (CRM) resumed flights on the 1,800 km route to Berlin Tegel (TXL), which it last served in January 2012. While (CRM) is the only carrier to offer services to Athens from the German capital Berlin’s busiest airport, Berlin Tegel (TXL), easyJet (EZY) competes indirectly with 5x-weekly flights from Berlin Schönefeld. In addition, on May 1, (CRM) commenced services to St Petersburg (LED) from both Heraklion (HER) and Rhodes (RHO), bringing the total of Greek destinations it connects with the Russian city to 4 (it already offers 2x-weekly flights from both Athens and Thessaloniki). All new 2x-weekly services are operated with A320s. The competition consists of Rossiya Airlines (SDM) and TransAero (TRX).

(CRM) launched 2x-weekly, Athens - Manchester service on May 25. The Star (SAL) Alliance member will operate the route 2x-weekly using an A320. (CRM) already operates 3x-daily flights to London Heathrow airport from the Greek capital. Aegean (CRM) will compete with EasyJet (EZY) on the new route.

(CRM) is operating 8 new international routes from Athens this summer.

(CRM) continued to increase its summer offering, as it launched services on the 970 km route from Heraklion (HER) to Tel Aviv (TLV) on 12 May. (CRM), which already serves the Israeli city from Athens (daily flights) and Thessaloniki (3x-weekly), now offers a 2x-weekly schedule from Crete until October 6, operated using A320s.

Air Baltic (BAU) will wet-lease one of its 2 757-256s (26251, YL-BDB) to Aegean Airlines (CRM) for the peak summer season from June 27 to September 15. The 2 757-200s on lease from (ILFC) (ILF) cannot be profitably operated on (BAU)'s own network and have recently been returned to (BAU) from a sub-lease to TonléSap Airlines ((IATA) Code: K9, based at Phnom Penh). Air Baltic (BAU) now plans to lease them out to other customers as opportunities arise. This summer, (YL-BDB) will be based at Heraklion and operate for (CRM) to Dusseldorf International, Paris (CDG), and Tel Aviv Ben Gurion.

July 2013: Aegean Airlines (CRM) commenced operations from its Athens (ATH) hub to London Stansted (STN) on July 11th. (CRM) returns to (STN) after nearly a 4-year hiatus. The newly launched 3x-weekly flights compliment (CRM)’s existing service to London Heathrow, which it operates with the same frequency. Seasonal flights on the newly launched route are operated using 168-seat A320s and scheduled to terminate on September 16.

Turkish Airlines (THY) is still interested in a stake in Greece's Olympic Air (OLY) as well as buying Aegean Airlines (CRM) reports in the Turkish press have claimed. Under the purported deal as described in the "Zaman" journal, (THY) is "still considering an Olympic Air (OLY) buyout in its effort to expand further in the region." Under the plan, following its acquisition, (OLY) would retain its name and logo for a short period before being fully integrated into Turkish Airlines (THY). Athens International would also be developed into a hub alongside Istanbul Atatürk, "in order to start operating flights from Greece to various destinations abroad." (THY) is also said to be mulling a possible bid to acquire Aegean Airlines (CRM) at a later date.

August 2013: Aegean Airlines (CRM) has offered new concessions to gain European Union (EU) antitrust (ATI) approval for its second attempt to acquire Olympic Air (OLY), indicating an earlier offer had failed to ease competition concerns over the planned tie up. According to the European Commission (EC), (CRM) has submitted a renewed bid with added concessions but did not elaborate on them. In its March proposal, (CRM) had offered to cap fares on "some" domestic routes but this failed to allay the (EC)'s fears that a combined entity would still have a monopoly on some routes. Faced with declining traffic in its domestic market due to Greece's prolonged recession, loss-making (CRM) has said the proposed EUR 72 million/$ 96.38 million acquisition of Olympic (OLY) was crucial for its survival. However, it faces competition from regional rival, Turkish Airlines (THY), whose bid for (OLY) is reportedly "EUR 19 million more than that of (CRM)." (THY) have also set sights on acquiring (CRM) in the long term.

September 2013: Aegean Airlines (CRM) has rebounded in its 2nd-quarter performance, posting +€17.7 million/+$23 million in net profit, a considerable turnaround from a loss of -€13.5 million during the year-ago period.

October 2013: The European Commission (EC) has allowed Aegean Airlines (CRM) to acquire the loss-making Olympic Air (OLY) following a 6-month investigation into the competition ramifications of the proposed acquisition.

Under plans announced almost exactly a year ago, Star (SAL) Alliance member, Aegean (CRM) will pay €72 million/$97 million for Olympic Air (CRM), which will become a subsidiary.

Aegean Airlines (CRM) has signed a definitive agreement with Marfin Investment Group to acquire Olympic Air (OLY) for €72 million/$99.2 million in cash, and the transfer of 100% of Olympic Air shares has been completed. A down payment of €20 million was paid October 22, with the remainder to be paid in 5 equal annual installments, the 1st of which was paid October 23. On completion, (OLY) becomes a subsidiary of Aegean (CRM) which assumes management of the company.

While back office and support functions will be merged, (CRM) intends to keep the 2 brands, with each retaining distinct airplanes and flight activity.

Olympic Airlines (OLY), the former national carrier, was privatized and became Olympic Air in 2009, serving largely domestic routes including many public service obligation sectors.

(EC) VP Competition Joaquín Almunia, said: “It is clear that, due to the ongoing Greek crisis and given (OLY)’s own very difficult financial situation, (OLY) would be forced to leave the market soon, in any event. Therefore, we approved the merger because it has no additional negative effect on competition.”

The report noted the Greek economic crisis had seen a drop of -26% in demand for domestic air passenger transport from Athens (from 6.1 million passengers in 2009 to 4.5 million in 2012) and there had been a further -6.3% decline during the 1st half of 2013 year-over-year.

(CRM) said the rationale of the decision “supports the absolute necessity of economies of scale to achieve viability within the Greek aviation market.” Explaining the reasons behind giving approval for the acquisition (a similar attempt was refused in 2011 on competition grounds) the (EC) said if (OLY) collapsed, Aegean (CRM) would become the only significant domestic service provider and would take Olympic (OLY)’s current market share.

“Therefore, with or without the merger, Olympic (OLY) would soon disappear as a competitor to Aegean (CRM). Thus, the merger causes no harm to competition that would not have occurred anyway.”

Greece’s economic crisis means there is little likelihood of any other carrier beginning services on the routes. It noted Olympic (OLY) has never been profitable since privatization in 2009 and has received considerable financial support from its sole shareholder, the Marfin Investment Group (MIG). With no prospect of improvement, the (MIG) decided to discontinue its support of Olympic (OLY) if it was not sold to Aegean (CRM). This would have led to Olympic (OLY)’s permanent shutdown.

At 1 time, the merger between Greek carriers Aegean Airlines (CRM) and Olympic Air (OLY) might have seemed like a marriage of equals, but the current reality is quite different. Based on scheduled Available Seat Kilometers (ASK)s in October, (CRM) is 10x- larger than (OLY). While (CRM) has grown its (ASK)s by +8% in the last 12 months, (OLY) has cut its (ASK)s by half. So with the (EU) having finally decided to allow the two carriers to merge, how do the networks of the 2 carriers compare? What is it that Aegean (CRM) gains by absorbing Olympic (OLY)? While (CRM) has been focussed on growing its international network, not just from Athens but from other Greek airports, Olympic (OLY) has been left primarily to deal with a rapidly shrinking domestic market focussed on Athens. Between 2009 and 2012, domestic passenger numbers at Athens International Airport have fallen by -26.4% from 6.13 million to just 4.51 million. In the 1st 9 months of this year, domestic demand has fallen by a further -5.5%.

Olympic (OLY) is operating a total of 40 routes, having dropped 5 and added none since this time last year. Of the 40 routes, 32 are from Athens, and of those 27 are to domestic destinations, with just 5 international routes (to Belgrade, Bucharest, Istanbul, Sofia, and Tirana). The 8 non-Athens routes are all domestic. None of (OLY)’s routes have a sector length of >850 km. Among the 5 routes dropped during the last year were 2 (Larnaca and Tel Aviv) that were >900 km. This helps explain how the airline’s (ASK)s have fallen so dramatically (by -50%), but the number of flights operated has been cut by only -19%. (OLY)’s fleet currently comprises 10 78-seat Dash 8-Q400s, 4 37-seat DHC-8-100s, and a solitary A319. In October 2012, Airbus (EDS) airplanes operated >250 weekly flights for (CRM), but this has now fallen to just 40, made up of 10 weekly return flights to both Alexandroupolis and Santorini.

One way of comparing the 2 airlines’ networks is by examining how many weekly (ASK)s are allocated to different markets segments. Despite Aegean (CRM)’s focus on international routes (84% of its (ASK)s) it still generates >80% more (ASK)s on domestic routes from Athens than Olympic (OLY).

Aegean (CRM) only serves 10 domestic points from Athens, compared with 27 for Olympic (OLY), but the use of larger airplanes (it has an all-Airbus narrow body fleet) and higher frequencies, more than compensates. On 9 of Aegean (CRM)’s 10 domestic routes, it offers more weekly seats than Olympic (OLY), with Kos being the exception. Athens - Rhodes is 1 of the routes that Olympic (OLY) does not serve at present, but did serve this time last year.

SEE ATTACHED - - "CRM-2013-10 - ATHENS DOMESTIC ROUTES."

The 10 domestic routes that Aegean (CRM) flies (of which 8 are also served by Olympic (OLY)) also account for almost 45% of Olympic (OLY)’s weekly domestic seats from Athens. The remaining 55% are spread across 19 other domestic routes on which (OLY) does not face competition from Aegean (CRM). Although the indications are that after the merger, both airlines will continue to operate as separate brands, it will be interesting to see how much further capacity rationalization takes place on these domestic routes.

November 2013: Aegean Airlines (CRM), which signed a definitive agreement with the Marfin Investment Group (MIG) to acquire Olympic Air (OLY) for €72 million/$99.2 million on October 24, presented the benefits of the transaction during a press conference in Athens.

According to (CRM), over the next 6 to 14 months, the resulting synergies of the deal will lead to an “enhanced fleet and an immediate expansion of the network, to the enhancement of the connectivity in Greece and abroad, as well as to cost savings from the consolidation of administrative services, with benefits saving up to €35 million annually.” Aegean (CRM) said its objective and commitment is to “pass these benefits to the passengers with more competitive rates, enhancement of privileges for loyal customers of both companies and network expansion.”

(CRM) announced the February 2014 launch of two new categories of fares in economy (Y) class (the "GoLight" and "Flex" fares, with prices starting from €24 to Athens. (CRM) also announced a package of initiatives to support the remote areas of Greece.

(CRM) said it will launch 15 new destinations from Athens in 2014, reaching to 47 overall international destinations from Athens. The new destinations include Birmingham in England; Marseille and Nantes in France; Zurich in Switzerland; Hamburg, Hanover and Nuremberg in Germany; Copenhagen in Denmark; Catania in Italy; Abu Dhabi in the United Arab Emirates (UAE); Beirut in Lebanon; and Paphos in Cyprus.

Overall in 2014, 45 to 50 new routes will be added from (CRM)’s eight bases in Athens and in the Greek region, including the new base in Chania. “As a result, Aegean (CRM) and Olympic Air (OLY) will jointly cover in 2014 a network of >250 routes, of which 205 or more are international routes and 47 to 50 domestic routes.”

A320-232 (2828, SX-DGN), AerCap (DEA) leased, ex-(PR-TAS).

December 2013: Aegean Airlines (CRM) has reported a profit after tax of +€59.2 million/+$80.4 million for the 1sSt 9 months of 2013, reversing a loss of -€8.7 million in the year-ago period.

The agreement will see (CRM) commence a 4x-weekly service between Athens and Abu Dhabi starting from March 30. Pending regulatory approvals, (EHD) will place its flight code on the new flight. (CRM) will operate a 12C, 156Y-seat, Airbus A320 on the route; Etihad (EHD) will operate daily services to Athens.

(EHD) will also place its code on Aegean (CRM)-operated flights to 16 Greek destinations, and to a further 10 cities across Europe. In return, (CRM) will offer code share routes between Athens via Abu Dhabi to Bahrain, Kuwait, Johannesburg, Melbourne, Perth, and Sydney.

“By partnering with Etihad Airways (EHD), Aegean (CRM) gains access to the Gulf region and South Africa, as well as increasing connection opportunities to Australia. (CRM) will also open up points on its network to Etihad Airways (EHD) customers, and will enhance access to and from Greece via Abu Dhabi,” (CRM) (CEO) Dimitris Gerogiannis said.

From May 27, Aegean Airlines (CRM) will operate a non-stop service 3x-weekly from Hamburg Airport to Athens. Operated on an A320, the route has not been served since 2004.

Michael Eggenschwiler Hamburg Airport’s (CEO), said: “There is very strong demand, not just from holidaymakers and the many business travellers, but also from the many Greeks who live here in northern Germany.” In 2012, >40,000 passengers flew from Hamburg to Athens, despite needing a connecting flight.

From May 29, (CRM) will also fly to Heraklion, Crete, on Tuesdays and Thursdays.

Ryanair (RYR) will open bases at Athens and Thessaloniki in April 2014, adding +3 more airplanes and 9 new routes to its Greek operations. (RYR) plans to base 2 airplanes in Athens, which will be used to add services to Chania, London, Milan, Paphos, Rhodes, and Thessaloniki. It will also base a single airplane at Thessaloniki and open 3 new routes from the airport: Athens, Pisa, and Warsaw.

Rapidly expanding (RYR), which already has a single Greek base at Chania, estimates the openings will add 1.2 million passengers from Athens per year and a further 1.6 million from Thessaloniki.

With these latest additions, (RYR)’s network will total 64 bases.

Aegean Airlines (CRM) believes it is ready to face the fresh competition from (RYR) following its acquisition of Olympic Air (OLY) in November. (CRM) had said in November that over the next 6 to 14 months, the resulting synergies of the deal will lead to an “enhanced fleet and an immediate expansion of the network, to the enhancement of the connectivity in Greece and abroad." (CRM) said: “Today’s announcement issued by (RYR), regarding 2 new operation bases in Athens and Thessaloniki, confirms the function of a fully competitive market, within the framework of the European carriers market, as it has always been indicated by our company. This is exactly the reason for which the joining of powers between the 2 Greek carriers, Aegean (CRM) and Olympic Air (OLY) was indispensable so [far as creating the] effective operation and growth of a Greek carrier that will worthily represent our country to this common European market. Today, following the completion of this union, we hold the size needed for being competitive and [to grow].”

March 2014: Aegean Airlines (CRM) has reported a net profit of +€66.3 million/+$91.3 million for 2013, a +€77 million/+$101.8 million improvement on the -€10.5 million loss the carrier posted for 2012. The unexpected results were in contrast to comments made by (CRM) Managing Director Dimitris Gerogiannis in November, when he predicted the purchase of Olympic Air (OLY) would be “loss-making for the full year.” (CRM) acquired (OLY) in October. Accordingly, (CRM) posted end-of-year results in 2 formats: (CRM) as a singular parent airline (the Company), and also as a consolidated Group (folding-in Olympic Air’s post-acquisition results from the last 2 months of 2013).

“The 2 airlines will retain their brand names and trademarks as well as distinct flight operations, fleet and flying staff, while administrative services have already begun to be consolidated since the end of 2013,” the company said in its report.

Company revenue for the full-year 2013 financial period was €682.7 million, up +21.3% year-over-year from 2012’s posted revenue of €562.9 million. Company operating expenses rose +5.2% to €569.6 million, resulting in a closing operating profit for the year of +€113.1 million; >5x the company’s reported +€21.3 million operating profit from 2012. Company net profit for the year was +€66.3 million.

Aegean’s Group revenue for 2013 was €698.9 million, up +24.2% from 2012 (before the Olympic Air (OLY) acquisition). Group operating expenses rose +9.5% to €593.1 million. The resulting Group operating profit for the year came to +€105.8 million (nearly quintupling Aegean (CRM)’s operating profit from 2012). The Group’s combined profit for the year was +€57.8 million, a +€68.3 million turnaround from 2012.

As a stand-alone airline, Olympic Air (OLY)’s revenue for 2013 was €167.4 million, with a net loss for the year of -€13.9 million.

Passenger numbers for Aegean (CRM) in 2013 were up +12% year-over-year, to 6.8 million. International passengers increased +14% to 4 million. Domestic market ridership grew +9% during the year, to 2.8 million. (CRM)’s total load factor for 2013 came to 79.4% LF, up +5 points from 2012. Combined (CRM) and Olympic Air (OLY) passengers in 2013 came to 8.8 million, with a consolidated load factor of 78.3% LF.

As of December 31, 2013, Aegean Group’s fleet had 45 airplanes, comprising 25 Airbus A320s, 4 A321s, 2 A319s (1 belonging to (CRM)’s fleet, the other belonging to Olympic Air (OLY)’s fleet), 10 Bombardier Dash 8-Q400s (part of the Olympic Air (OLY) fleet) and 4 Dash 8-100s (part of Olympic Air). The Group plans to grow its fleet to 50 airplanes in 2014, as well as add 12 additional destinations from Athens.

Aegean Airlines (CRM), the largest Greek carrier by total number of passengers carried and by fleet size, expanded its seasonal offering with a new service from Kalamata (KLX) to Düsseldorf (DUS) on March 3rd. The 1,988 km sector from the 2nd most populous city of the Peloponnese peninsula, will be served weekly (Mondays) until October 4th, utilizing (CRM)’s 168-seat A320s. (CRM)’s 3rd route from Kalamata will see a frequency increase to 2x-weekly from May 28th and will face no competition from other carriers.

April 2014: Aegean Airlines (CRM), which previously began a domestic link between Rhodes and Heraklion, expanded its European network with six new routes, all of which were launched from Athens (ATH) and Heraklion (HER), using its 168Y-seat A320s. With the longest route being the 2,433 km service to Bordeaux (BOD), launched on April 14th, and the shortest being inaugurated to Vienna (VIE) at 1,587 km on April 11th, the Star Alliance (SAL) member will face competition on three of the new routes. The routes included:
Starting April 10th, Athens (ATH) to Marseille (MRS) 2x-weekly, vs AirFrance (AFA) 2x-weekly;
April 11th, Heraklion (HER) to Vienna (VIE) 2x-weekly, vs NIKI (NKI) 2x weekly; Austrian Airlines (AUL) 1x-weekly;
April 12th, (ATH) to Nantes (NTE) 1x-weekly;
Heraklion (HER) to Berlin Tegel (TXL) 1x-weekly, vs airberlin (BER) 2x-weekly, germanwings (RFG) 2x-weekly;
(HER) to (MRS) 2x-weekly;
(HER) to Bordeaux (BOD) 1x-weekly.

(CRM) which previously added 6 new European routes, continued to expand its offering with the addition of a new link from Rhodes (RHO) to Paris (CDG) on April 15th. The 2,503 km sector to the French capital will be served 2x-weekly (Tuesdays and Fridays) until October 24th, utilizing its 168-seat A320s. (CRM)’s 4th route to (CDG) (as it already flies from Athens, Heraklion and Thessaloniki) will face no competition from other carriers.

May 2014: Aegean Airlines (CRM) reported a 1st-quarter after-tax loss of -€8.4 million/-$11.5 million, narrowing the consolidated -€13.2 million loss reported for the same period last year. (CRM) said the financial results were not directly comparable year-over-year because of the acquisition of Olympic Air (OLY), which was completed in October 2013. As a result, (CRM) consolidated the 1st-quarter 2013 results on a pro-forma basis, assuming inclusion of Olympic Air (OLY)) in the respective period last year.

The actual published Aegean (CRM) 1st-quarter 2013 results, excluding Olympic Air (OLY), reported an after-tax loss of -€1.2 million on the back of a revenue total of €98.9 million.

The consolidated figures reveal a +1% increase in revenue for 1st-quarter 2014 to €133.9 million from €132.2 million during the year-ago period.

Between them, Aegean (CRM) and Olympic Air (OLY) carried 1.6 million passengers in the 1st quarter, up +12% compared to the same period the previous year. Domestic passenger numbers increased +17% to 930,000, while international passengers grew +6% to 700,000. Load factor improved +1.8 points to 73% LF.

Aegean (CRM) Managing Director Dimitris Gerogiannis said: “Following the acquisition of Olympic Air (OLY), the initial benefits from network synergies are already evident and along with our new pricing policy are translated to improved load factors and increased connecting traffic during this seasonally weakest quarter for the year.” He said pre-bookings for the summer season and April traffic results confirmed the positive demand trend, but warned that competition had “substantially increased” available capacity in the Greek market.

“As far as Olympic Air (OLY) integration is concerned, implementation is progressing in line with targets, with the full synergy and scale economies benefits expected to mature with the next 12 months,” Gerogiannis said.

June 2014: Aegean Airlines (CRM) launched 5 new European routes this month, two from Athens (ATH) and 3 from Thessaloniki (SKG). All routes are between 1,100 km and 1,700 km in length, and will be served with between 2x- and 4x-weekly flights using (CRM)’s narrow body Airbus airplanes. Proving that (CRM) is not afraid of competition, all five routes are already served by other carriers. Beirut (BEY), Cologne Bonn (CGN) and Rostov-on-Don (ROV) are new destinations for the Greek carrier, which recently celebrated 15 years of operations.

Aegean Airlines (CRM) expanded its seasonal offering with the addition of 4 new routes. With the longest sector being the 2,560 km route from Athens (ATH) to Birmingham (BHX), and the shortest being inaugurated from Athens (ATH) but this time to Izmir (ADB) in Turkey at 285 km, the Star (SAL) Alliance member will face competition on four of the new airport pairs:
Athens (ATH) to Amman (AMM) and to Birmingham (BHX), A320 2x-weekly;
(ATH) to Izmir (ADB), 3x-weekly;
Kalamata (KLX) to Paris (CDG), A319 1x-weekly.

Connections between Greece and the Gulf have increased noticeably after two carriers, Gulf Air (GUL) and Aegean Airlines (CRM)) have launched services between the region and Athens.

Gulf Air (GUL) restarted services between Bahrain and the Greek capital, after suspending them in March 2012 as the Bahraini carrier sought to curtail heavy losses by cutting under-performing routes. It announced earlier this year it would return to the Greek capital as the European nation’s economy began to recover from a severe economic depression.

(GUL) will operate 4x-weekly flights to Athens with an A320ER in a two-class configuration. Unusual for a single-aisle airplane, Gulf Air (GUL) has installed 14C lie-flat seats in the business (C) class cabin. The A320 also carries up to 96Y economy passengers.

(GUL)’s return to Athens comes just days after Greece’s Aegean Airlines (CRM) inaugurated an Abu Dhabi route. (CRM) will also have 4x-weekly round trips, using a two-class, 168-seat A320.

Aegean (CRM) announced last year it would begin code sharing with Abu Dhabi-based Etihad Airways (EHD). The Greek carrier will add its A3 code to (EHD)’s flights to Bahrain, Kuwait and Johannesburg, together with Australia’s Sydney, Melbourne and Perth. In turn, (EHD) will add its EY code to Aegean (CRM) flights from Athens to 16 destinations in Europe.

July 2014: Aegean Airlines (CRM) began 4x-weekly, Athens - Abu Dhabi Airbus A320 service. (CRM) expanded its seasonal offering with the addition of four new routes during the course of last week, all of which are served twice-weekly utilizing its 78-seat Dash 8-400s. Therefore, the Star (SAL) Alliance member has expanded its presence at Mykonos (JMK) and Santorini (JTR) with services to Heraklion (HER) and Rhodes (RHO). Only the 121-km sector from Santorini to Heraklion will face direct competition from Minoan Air (thrice-weekly) and Jetairfly (TUB) (weekly).

August 2014: Aegean Airlines (CRM) reported an after tax profit of +€15.9 million/+$21 million for the half year ended June 30, down marginally from the +€16.5 million reported for the same period the previous year.

However, net earnings for the period were up +131% from +€6.9 million year-on-year when Olympic Air (OLY) is included in the respective period.

First-half revenue increased +8% to €388.6 million, resulting in an operating profit of +€41.4 million for the period, up +36% year-over-year.

(CRM) attributes the group’s first-half improved results to its network expansion and cost synergies with Olympic Air (OLY), which it acquired in October last year.

Together, Aegean (CRM) and Olympic Air (OLY) carried 4.3 million passengers in (H1) 2014, up +16% on the previous year, with load factor improving +2.1% points to 76.1% LF, despite the high number of new destinations launched during the period. However, yield fell -5%.

Traffic in the domestic network increased +19%, driven mainly by lower fares, which boosted demand for main markets, as well as smaller island destinations. International traffic out of the eight airplane bases rose +13%, with Athens registering +17% as the market recovered for the first time since 2008.

Aegean (CRM) Managing Director, Dimitris Gerogiannis said: “Our expanded operations for 2014 with a fleet of 50 airplanes, 13 million available seats to be offered for the whole year, and 17 new international destinations, are yielding positive results. (OLY) synergies are gradually maturing, bringing unit cost improvements and increased flows from connectivity. Our investment in incoming leisure and tourism over the last five years now brings tangible results for Aegean (CRM). This is so despite the significant rise in competitive capacity to our market as well as new source market related challenges faced in Russia and Ukraine. We are benefiting from scale economies and network development, and we will continue to gradually but consistently, pursue this strategy, while making new investments in quality and competitiveness as most recently with our decision to take delivery of seven brand new Airbus A320 airplanes in 2015 - 2016.”

Aegean (CRM) said its strategic priority for 2014 is to further expand its network, and the third-quarter outlook remains positive. Recent geopolitical developments in Ukraine, Russia and Israel are expected to have a negative effect on demand, but overall indications regarding inbound tourism arrivals are still positive.

Aegean Airlines (CRM) has ordered two additional Airbus A320ceos for accelerated delivery, adding to a previous order for five A320 airplanes placed in September 2007. Deliveries of the previously ordered airplanes had been deferred due to the economic crisis in Greece.

Delivery of the seven airplanes will begin in June 2015 and will be completed by early 2016.

The airplanes will be equipped with Sharklets and will be powered by (IAE) (V2500) engines.

According to Airbus (EDS), these airplanes will be the first A320s in the fleet with an increased takeoff weight capacity of up to 78 tons, enabling (CRM) to expand its route network with even longer range operations.

(CRM) Chairman, Theodoros Vassilakis said (CRM)’s decision to take delivery of seven new Airbus A320s “shows its commitment to invest once more in the ongoing qualitative growth of the aviation sector in Greece. Our capabilities are increasing and the existing competitive advantage of the low average age of our airplanes is further enhanced. We are doing everything in our hands to further increase the satisfaction of our passengers and certainly our competitiveness.”

October 2014: The Greek Air Traffic Controller Association (GATCA) has announced strike action October 4 and 5, which will disrupt flights over Europe. The (GATCA) is protesting against a ministerial decision that would give the Public Debt Management Agency access to airport fees. (GATCA) fears this money could be used for the massive financial debts of the Greece state instead using it to increase flight safety.

The air traffic controllers said they will also submit a petition to European Parliament. (GATCA) said travelers should expect delays and flight cancellations.

November 2014: Aegean Airlines (CRM) has announced its summer 2015 operations will include a network of 134 destinations, including 100 international and 34 domestic routes in 42 countries. The Star (SAL) Alliance member also said its summer 2015 schedule will include 15 million available seats (7.7 million seats on international flights and 7.3 million seats on domestic flights to 34 destinations), up +2 million over 2014.

(CRM)’s fleet will comprise 56 airplanes, after Aegean (CRM)’s recent investment in new additional Airbus A320ceos, the company said.

Flight increases will be more intensive from (CRM)’s main bases of Athens and Heraklion, but its six local bases (Rhodes, Corfu, Chania, Kos, Kalamata, & Larnaca (Cyprus)) will also see more flights.

(CRM) has added +16 international destinations to its scheduled operations, including Helsinki, Toulouse, Deauville, Metz, Napoli, Pisa, Malta, Amsterdam, Kuwait, Paphos, Riyadh, Tallinn, Oslo, Teheran, Dubrovnik, and Yerevan. The number of destinations and service frequencies to countries that are sources of tourism (such as France, Italy, Switzerland, England, and Germany) are also being increased.

December 2014: News Item A-1: The Aegean Airlines Group reported a net profit of +€78.6 million/+$97 million for the nine months ended September 30, up nearly +33% from +€59.2 million reported in the year-ago period.

(CRM) attributed the improved results to network expansion and greater synergies achieved between Aegean (CRM) and Olympic Air (OLY), which it acquired in October 2013.

Consolidated revenue was up +10% to €736 million, and operating profit increased +45% to +€142 million year-over-year.

The two airlines carried 7.9 million in the nine-month period, up +14% in the year-ago period. Load factor was up half a percentage point year-on-year to 79% LF. Domestic traffic increased +16%, with the market showing good elasticity to lower fares, while international traffic grew +12% (+18% out of Athens alone).

“We will continue to invest in growing our fleet and capacity for 2015, adding destinations and penetrating new source markets for Greek tourism,” Gerogiannis said. “Our key priorities involve continuous investments in growing our network, achieving scale economies, as well as focusing on new service offerings to our passengers within a fast changing competitive environment, that does offer however significant opportunities to grow further.”

(CRM) will take delivery of seven new Airbus A320 airplanes in the 2015 - 2016 time frame. In 2015, the network will offer 15 million available seats, +2 million more than in 2014, with flights to 134 destinations (34 domestic and 100 international) in 42 countries.

January 2014: Aegean Airlines, which was among the potential bidders for Cyprus Airways (CYP), is significantly stepping up flights from Larnaca and Paphos hub following the Cypriot carrier’s collapse.

This summer, (CRM) will base four Airbus A320s at its Larnaca hub, which it opened four years ago, and step up its Cypriot network to 14 destinations. “I believe that today is the first day of our company’s new course of gradual, but long-lasting growth in Cyprus,” (CRM) Vice-Chairman, Eftichios Vasilakis said.

Specifically, (CRM) will add services from Cyprus to London Heathrow, Paris, Munich, Rome and Milan. These will be joined by services to Israel, Kiev, and Beirut, once (CRM) secures traffic rights.

It will also open a new direct Athens - Paphos service, along with direct flights to Heraklion, Myconos, Rhodes, and Santorini, while stepping up frequencies between Cyprus and the Greek cities of Athens and Thessaloniki. “The company aims to support this venture with additional human resources (HR) from Cyprus at the earliest opportunity,” (CRM) said.

In a further move, (CRM) is offering Cyprus Airways (CYP)’s top level “Elite” frequent flyer program (FFP) members Gold membership of its own (FFP). It will also grant existing and new members of its Miles + Bonus (FFP) +50% more miles on flights to and from Cyprus for the whole of 2015.

Ryanair (RYR) and Aegean (CRM) both emerged as likely contenders to buy (CYP) late last year. Aside from offering rescue fares, (RYR) is yet to make a move, but a (RYR) spokesman said, “We are still proceeding with our application for a Cypriot air operator’s certificate (AOC).”

(CRM) flies to 134 destinations to 43 countries using its fleet of 56 Airbus A320s, following its acquisition of rival Greek carrier Olympic Air (OLY).

News Item A-2: Russian aviation authorities will remove all restrictions for Greek carriers on services to Sochi, Kaliningrad, and Vladivostok international airports.

According to a Memo of Understanding (MOU) signed by the countries, the new rules are applicable for three (IATA) (ITA) consequent periods for Sochi and Kaliningrad, starting from the (IATA) 2014 - 2015 winter season for Sochi flights, and the (IATA) 2015 summer season for Kaliningrad service.

For Vladivostok International Airport, the rules are applicable for an unlimited period starting from (IATA)’s 2015 summer season, including all passenger and cargo operations. According to Russia’s Federal Air Transport Agency, Rosaviatsia, “these operations do not utilize [the] trans-Siberian route network.”

The move is part of the Russian government’s plan to recoup its investment on airport renovations. Sochi International Airport received the investments to prepare for the 2014 Winter Olympics; Vladivostok airport built a new infrastructure for Asia-Pacific Economic Cooperation (APEC) leaders meeting in September 2012.

For Kaliningrad, aviation transport is vital as the region is separated from Russia’s main territory.

Last year, Russian aviation authorities removed all restrictions for Turkish carriers on service to Sochi International Airport for three (IATA) seasons.

April 2015: News Item A-1: Aegean Airlines (CRM) has recorded improved 2014 results, driven by network expansion and its acquisition of former flag-carrier, Olympic Air (OLY).

News Item A-2: Aegean Airlines (CRM) launched two new European routes, both of which are operated by its 168-seat A320s. Firstly, (CRM) the Star (SAL) Alliance carrier introduced twice-weekly (Wednesdays and Fridays) flights on the 2,338 km sector from Larnaca (LCA) to Munich (MUC) on April 1st, a route flown by Lufthansa (DLH) (thrice-weekly) and Germania (GER) (weekly). Secondly, on April 4th, (CRM) started weekly (Saturdays) departures from Heraklion (HER) to Stuttgart (STR), a service that will see a frequency increase to twice-weekly from June 16th. This sector is already operated by germanwings (RFG) (twice-weekly) and Condor (CDF) (weekly).

May 2015: News Item A-1: Aegean Airlines (CRM) has reported a first-quarter net loss of -€8.3 million, slightly narrowed from a -€8.4 million loss in the year-ago period.

(CRM) said the results were due to lower fares and more capacity in the seasonally weakest period. In addition, (CRM) is maintaining routes launched in the previous summer season for the winter months and increasing frequencies on existing routes. It said a stronger dollar offset the benefit of lower fuel costs and unit cost reduction stemming from economies of scale. “Network expansion, combined with lower fares, led to a +22% growth on our international network traffic”, Managing Director, Dimitris Gerogiannis said.

Revenue rose +3% to €138.1 million and yield lowered -11% to 9.0% cents as (RASK) fell -15% to 6.3 cents. Cash and cash equivalent reached €238 million as of March 31.

Traffic for the Aegean Group (including Olympic Air (OLY), which operates mainly on domestic routes) rose +15% to 1.57 billion (RPK)s on a +20% increase in capacity to 2.2 billion (ASK)s, producing a load factor of 73% LF, down -2.7.points.

Aegean (CRM) and Olympic Air (OLY) carried 10.1 million passengers in 2014. The group’s fleet comprised 50 airplanes in 2014. “We are investing within an environment, that continues to be challenging for our country, and despite increased competitive intensity, with our strategy being supported by our improving unit costs,” Gerogiannis said. He added that the performance of the forthcoming summer period (June-October), given the significance of summer revenues, will determine the validation of (CRM)’s 2015 capacity and scope investments.

(CRM), the Star (SAL) Alliance member has recently announced its decision to take delivery of seven Airbus A320ceos in 2015 - 2016.

The 2015 network will offer 15 million available seats, >2 million more than 2014, with flights to 134 destinations (34 domestic and 100 international) to 42 countries.

News Item A-2: Aegean Airlines (CRM) launched two new services from Rhodes (RHO), all operated using (CRM)’s 168-seat A320s, starting on May 22nd with new weekly service to Vienna (VIE). From May 29th, the service will operate twice-weekly (Tuesdays and Fridays). The 1,605 km sector faces direct competition from Austrian Airlines (AUL) (twice-weekly, Thursdays and Sundays), NIKI (NKI) 2x weekly, Tuesdays and Thursdays) and TUIfly (HAP)/(HLX) with weekly service on Thursdays. On May 23rd, Aegean (CRM) launched new 2x weekly service (Wednesdays and Saturdays) to Stuttgart (STR). The 2,050 km sector faces direct competition from TUIfly (HAP)/(HLX) with 4x weekly service, Condor (CDF) with 3x weekly service and SunExpress Germany with weekly service on Tuesdays. Both of the routes complement the recently launched service between Rhodes and Amsterdam on May 16th.

News Item A-2: Aegean Airlines (CRM) has become the latest European carrier to serve Iran with the launch on July 22 of 3x-weekly flights between Athens (ATH) and Tehran Imam Khomeini (IKA). The 2,433 km route will be served by (CRM)’s A320s. Flights depart Athens on Mondays, Wednesdays and Saturdays at 20:15 arriving in the Iranian capital at 01:10 in the morning. Return flights depart Tehran at 02:00 and get back to Greece at 04:30 in the morning. Other European Union (EU) flag carriers currently serving Iran are Alitalia (ALI), Austrian Airlines (AUL), and Lufthansa (DLH). Competition on the new route is provided by Mahan Air (MHN) who already serve the market with 3x-weekly flights. In the first six months of this year, (CRM) has seen its passenger numbers grow by +15% with international traffic to/from Athens up by an impressive +26%.

News Item A-3: Aegean Airlines (CRM) is trying to reassure customers that it is operating its flight schedule normally in the wake of bank closures, capital controls and uncertainty over Greece’s future in the eurozone.

August 2015: News Item A-1: Air travel to and from Greece has been heavily affected as air traffic controllers went on a four-hour strike August 5 at the height of the European summer tourism season. All flights to airports in Greece have been affected.

The strike, called by the Greek Air Traffic Controllers Association (GATCA), is disputing the austerity plans of the Greece government.

Athens airport announced on its website that it has canceled all flights during this time.

Aegean Airlines (CRM) said it has been forced to cancel 19 domestic flights and reschedule the departure time of some scheduled flights.

More strike action is threatened for August 14 and 15, the European Regions Airline Association (ERA) said.

November 2015: Aegean Airlines (CRM) has added 13 new destinations to its 2016 summer schedule, marking its third year of continued strong growth. (CRM), the Star (SAL) Alliance member will operate to 111 international destinations in 45 countries and 34 domestic airports in Greece.

(CRM) is planning services from Athens to Amsterdam, Bari, Dublin, Jeddah, Krakow, Lille, Lisbon, Ljubljana, Luxembourg, Naples, Nice, Palma de Mallorca, and Split. Approximately 16.2 million seats will be available, an increase of +1.1 million seats compared to the same period in 2015.

Aegean (CRM) will take delivery of four Airbus A320ceos between November 2015 and March 2016, increasing its fleet to 47 Airbus A320/321s and 14 Bombardier (BMB) Dash 8-Q400/Dash 8-100s.

The number of international passengers connecting through Athens to Greece in 2015 has doubled compared to 2014, and will exceed >1 million by year-end and continue in 2016. The Athens hub works in combination with regional bases of Thessaloniki, Heraklion, and Rhodes, where 16 aircraft are based.

“Exactly two years after acquiring Olympic Air (OLY), we have moved to the next level, thanks to the potential we created for the company with the synergies, the efforts, and the maturation of our team,” Vice Chairman, Eftichios Vassilakis said.

(CRM) reported 2015 first-half net profit of +€14.8 million/+$16.4 million, down -8% from a +€16 million net-profit in the year-ago period. (CRM) said the results were due to the stronger dollar, higher air navigation charges in Greece and lower fares.

December 2015: News Item A-1: Aegean Airlines (CRM) reported 2015 nine-month net profit of +€81.9 million/+$92.1 million, up +4.2% from +€78.6 million in the year-ago period. (CRM) said the results were due to increased tourist flows to Greece and particularly to Athens, network efficiencies, gradual routes maturity, as well as increased connectivity.

9-month revenue rose +8.3% to €792.2 million. Pre-tax profit for the period was +€114.7 million, up +8.8% from +€105.4 million year-over-year. Earnings before interest, tax, depreciation and amortization (EBITDA) increased +1.3% to €120.3 million from €118.8 million in the year-ago period.

(CRM) Managing Director, Dimitris Gerogiannis said, “During 2015, we continued our expansion strategy, having added +40 additional new international destinations following the acquisition of Olympic Air (OLY). The third and most important quarter of the year started with unique challenges given the imposition of capital controls, which led to a loss in net bookings. Nevertheless, we executed the delivery of three new aircraft [Airbus A320s] despite the extended bank holiday in Greece, while net bookings gradually recovered and we have eventually managed to bring results from our investments in new fleet, network expansion and services.”

The total number of passengers carried rose +17% to 9.2 million; however, load factor decreased -1.6 points to 77.4% LF.

The Star Alliance (SAL) member said it has outperformed market growth in all its main bases in Athens, Rhodes, and Heraklion.

The 2015 Aegean (CRM) network offers 15 million available seats, two million more than 2014, with flights to 134 destinations (34 domestic and 100 international) to 42 countries.

News Item A-2: A consortium comprising German airport operator Fraport and Greek conglomerate, the Copelouzos Group has signed contracts to manage 14 Greek airports. The consortium was declared preferred bidder in November 2014.

The deal with the Hellenic Republic Asset Development Fund will see the consortium take on a 40-year concession to operate, manage, develop and maintain the airports. The transaction is expected to close in fall 2016, at which point the consortium will pay the €1.23 billion/$1.36 billion up front concession payment.

The payment will coincide with the consortium taking over operation of the 14 airports, which comprise three on the mainland (Aktio, Kavala, and Thessaloniki) and 11 on the Greek islands (Corfu/Kerkyra, Crete/Chania, Kefalonia, Kos, Mitilini, Mykonos, Rhodes, Samos, Santorini, Skiathos, and Zakynthos).

Together, the 14 airports handled 22 million passengers in 2014, which is expected to edge up to 23 million this year. International passengers accounted for 77% of the total.

Fraport will be majority shareholder in the consortium. Ownership of the airports will be retained by the Greek government.

As well as the initial concession fee, the consortium will pay an annual fixed fee, initially of €22.9 million. Additionally, it is required to invest €330 million in airport infrastructure up to 2020. This will be followed by additional payments both for maintenance, and investments to increase capacity for the remainder of the contract.

News Item A-2: Aegean Airlines (CRM) has taken delivery of the final of 7 Airbus A320ceos. It has 61 of the type in its fleet.

(CRM), which recently took delivery of its 7th and final Airbus A320ceo, is in the final stages of installing an A320 flight simulator training facility in Athens, (CRM) Managing Director, Dimitris Gerogiannis said at the A320ceo handover ceremony.

(CRM) operates 47 A320 family aircraft. “We have a simulator in Munich, and a fixed base A320 simulator, and we are also in the final stages of installing an A320 simulator in Athens. That way, we shall be able to have our training in Greece. So we’ve developed the capacity and the necessary critical mass to allow us to pursue this investment, too,” Gerogiannis said, adding Aegean (CRM) is investing in the training of 600 flight crew (FC), 1,200 cabin crew (CA) and 340 technical (MT) staff.

“After the [2014] acquisition of Olympic Air (OLY), we achieved significant growth, which means we have achieved a larger presence for Greece abroad. In 2013, we had 2,100 staff, last year the figure rose to 2,800, and we expect that in the summer of 2016 we shall be employing 3,000 staff.” He said (CRM) has created +900 new jobs over the past three years.

“From 2007 to 2016, there were 47 new A320 aircraft being brought in [to Aegean], representing the largest ever investment undertaken in Greece,” Gerogiannis said. This year, (CRM) will be operating a fleet of 61 aircraft, including for its regional subsidiary Olympic Air (OLY) 14 Dash-8 turboprops.

Gerogiannis said this year, (CRM), the Star (SAL) Alliance member is adding 1 million seats. “So we now have 16.2 million seats in total, up by some +6% - +7% compared to last year.”

Aegean (CRM) operates to 111 international and 34 domestic destinations in the summer 2016.

April 2016: Air traffic controllers in Greece held a strike on April 7, for 24 hours, bringing delays and flight cancelations, as part of a nationwide government worker strike against pension cuts.

The 24-hour strike of Air Traffic Control (ATC) Personnel (Federation of Associations of (HCAA) and the Panhellenic Union of Licensed Aeronautical Telecommunications Officers) began at midnight on April 7.

Aegean Airlines (CRM) said that both (CRM) and its subsidiary Olympic Air (OLY) were being forced to cancel seven flights and reschedule 10 flights that were due to operate on April 6.

On April 7, (CRM) and (OLY) canceled all flights, apart from seven international flight sectors, which were operated as originally scheduled. These seven flights operated from (CRM)’s base in Larnaca, Cyprus.

Athens International Airport announced it had canceled all flights operating from or to the airport during the 24-hour period.

May 2016: Greek flag carrier, Aegean Airlines (CRM) recorded a net loss of -€21.5 million/-$24 million for (1Q) 2016, widened from a -€8.3 million net loss for the year-ago quarter. The loss came on revenue up +7% at €147.9 million compared to €138.1 million a year ago.

Passenger traffic was up +9% at just over 2 million, while load factor slipped -1% to 69.3% LF compared to the year-ago period.

Aegean (CRM), which acquired the former national airline Olympic Air (OLY) as a wholly owned subsidiary in 2013, operates both international services and a domestic network providing vital links between the many Greek islands and the mainland.

Domestic passenger numbers rose +6% to just >1 million, while international passengers rose +12% to 956,000. Capacity, measured in (ASK)s, was up +16% at 2.58 billion. Costs, measured in (CASK)s, were down -2% at 4.5 euro cents. Including fuel costs, they dipped -5% to 5.7 euro cents.

(CRM) said the increased losses were largely because (CRM) took a new batch of seven Airbus A320ceo into its inventory during the quiet winter period, in preparation for the busy summer holiday season.

“The delivery of our new aircraft is now complete, so we start the year with a significantly larger—and younger—fleet and network compared to early 2015,” Managing Director, Dimitris Gerogiannis said. “We anticipate collecting on our network and fleet investment in the summer season through increased traffic flows, new services and the efficiency of our new fleet.

“Winters, which are weak in incoming tourism demand, do cost more as we grow and as domestic consumer remains weak due to the economy; this in turn increases our reliance on the quality of the demand of the summer season,” he said. “We have achieved growth even in domestic traffic against increasing route coverage by competitors, on the back of additional travel options and connectivity offered to our customers and through lower fares.”

July 2016: Greek carrier Aegean Airlines (CRM) and Portuguese flag carrier (TAP) Portugal have become the latest airlines to join lobby group Airlines for Europe (A4E).

(A4E) launched in January 2016, with the support of founding members Air France (AFA) - (KLM), UK budget carrier easyJet (EZY), the International Airlines Group (IAG), the Lufthansa Group and Irish low-cost carrier (LCC) Ryanair (RYR).

Aegean Airlines (CRM) said it made net earnings of +EUR32.2 million/+US$34.8 million last year, down from +EUR68.4 million in 2015. Group sales grew +4% to EUR1.02 billion.

(CRM), a member of the Star (SAL) Alliance airline group, said passenger numbers grew +7% in 2016 to 12.5 million, with its load factor (a measure of how full its planes are) improving by +0.6% points to 77.4% LF. "A particularly weak 2nd quarter and the increase of (VAT) tax by +11% points had a negative impact on full-year results," Chief Executive Officer Dimitris Gerogiannis said.

"Adjustments to our network in the last quarter led to significantly higher load factors, especially on flights abroad, and the trend is continuing in early 2017," he said.

(CRM) which flies a young fleet of 61 aircraft, mostly Airbus A320 jets, said its board would propose a dividend per share of EUR0.4, down from EUR0.7 on 2015 results.

April 2017: Aegean Airlines (CRM) and subsidiary Olympic Air (OLY) carried 2.1 million passengers in the 1st quarter, up +5% compared to 2.01 million the year-ago quarter.

International passenger traffic rose +17% year-over-year to 1.1 billion. Domestic traffic was down -6% to 992 million as the Star (SAL) Alliance member adjusted demand with lower fares and reduced flights, which improved load factors on both domestic and international routes to 76.8%, up 7.5 points year-over-year.

"We have recorded improved load factors during the winter season with attractive fares, which give the chance of affordable trips on a wider network," Managing Director Dimitris Gerogiannis said.

"Local demand remains weak and, combined with the seasonality of Greek tourism, resulted in the underutilization of our fleet," he said, adding this will continue to have a negative impact on financial results for the winter months. "Nevertheless, the evolution of load factors as well as pre-bookings for the summer season, which basically shape our financial performance, remains encouraging for the full year," he said.

(CRM) reported a 2016 net profit of +EUR32.2 million/+US$33.9 million, down -52.9% from +EUR72.1 million in 2015. Gerogiannis said, "Weak demand in the 2nd quarter of the year, combined with domestic tax increases in value-added tax on airline fares by +11%, had a negative impact on full-year results, despite strong performance in the 3rd and seasonably most important quarter of the year."

May 2017: Aegean Airlines (CRM) launched flights on its latest route to Germany on May 20, beginning a 2x-weekly (Wednesdays and Saturdays) service between Athens (ATH) and Hannover (HAJ). The Star (SAL) Alliance member will operate the 1,954 km sector on its fleet of A320s, with no other carrier operating the city pairing. With this launch, Aegean Airlines (CRM) now serves 8 destinations in Germany from Athens on 35 weekly flights including Berlin Tegel, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and Kassel-Calden, with the latter being operated by (CRM) for the "documenta 14" art exhibition. (CRM) will stop flights to Kassel-Calden on June 23.

November 2017: A combination of network adjustments and maturity of international destinations drove Aegean Airlines (CRM)’s international tourist flow upward +14% in the 1st 9 months of 2017, leading the Greek carrier to report a net profit of +€71.7 million/+$22.6 million, up 40% over €51.2 million net income in the year-ago 9 month period. (CRM) reported a 3rd-quarter net income of €91.7 million/$96.3 million), up +23% from €74.9 million in (Q3) 2016.